Former U.S. Sen. Heidi Heitkamp on Helping Local Businesses

FMR. SEN. HEIDI HEITKAMP, (D-ND): I think part of this has to do with distribution. The government could have basically taken a look at all the — what’s called a 940, which is a form you file if you have employees as a business and said, can we directly help you? They went through banks and there’s been reports, yet unconfirmed, that the larger banks basically went to the bigger customers, the customers that they wanted to hang on to and basically put them in the front of the queue, put them first in line for these dollars. But I think there’s something underlying all of this. And yes, there are businesses who can’t get these loans but then there are businesses who are saying, am I ever really going to reopen? I was living kind of hand to mouth. I was doing OK month to month, especially for restaurant businesses. Not those that are Michelin rated. But the Moms and Pops who run the diner in towns like Harrington and say, you know, is this something — am I going to take on the responsibility of spreading the virus? Am I really going to continue to work 12-hour days only to see my equity disappear in one crisis event? And so, there’s a measurement that people look at in this country, it’s the consumer sentiment measurement. And that measurement has taken the largest percentage dive in the history of actually keeping track, that’s University of Michigan’s measurement. And so, if you’re a small business, are you really going to have customers if you do reopen? And are you just going to say, I’m done?

CHRISTIANE AMANPOUR: Yes. What are you saying, Senator, that some of the businesses are just going to, you know, close forever and kind of maybe they don’t need this money that’s being put for them or what exactly are you saying? In other words, what’s the recourse for these small businesses to get the money as opposed to the bigger ones getting it?

HEITKAMP: You know, there’s small business and then there’s —

AMANPOUR: Their money.

HEITKAMP: — (INAUDIBLE) right? So, let’s talk about that small manufacturing concern, that’s part of a supply chain for Boeing. And everybody thinks Boeing manufacturers, all these parts themselves. Boeing is a huge contributor to small business because they basically buy their parts and most of their inputs on planes from smaller businesses. Those businesses are looking at the airline industry and saying, is this really something that I can still take risk and now reinvest with some additional dollars, not just those dollars that would keep my employees going, but the dollars that I need for inventory which aren’t covered by PPP? And so, there’s those business concerns and they’re thinking about their inventory, they’re thinking about a lot of the things going forward, the age of their workforce saying, is it worth it? I think you’ve got the small businesses that really are the heart of rural America, those small cafes, restaurants, hair salons, dry cleaners who are never going to recapture the lost revenue.