BY TENI ODUNTAN
WASHINGTON-The US Senate committee on Small Business and Entrepreneurship assembled on March 12th to discuss the recent COVID 19 pandemic that has left the country at a stand-still. The hearing was joined by Sen. Cardin (D-MD), Sen. Hawley (R-MO), Chair Kafoury, Sen. Jacky Rosen(D-NV), Chairman Kafoury (D-OR) as well and other politicians and on-lookers. he committee’s chairman, Sen. Marco Rubio (R-FL), commenced the hearing by welcoming the attendees and reassured them that they have began conversations on the coronavirus pandemic in the senate as well as in the white house. He also discussed the main premise of the hearing, which was how the virus will affect small businesses and its personnel as well as ways to help them. He discussed his previous correspondence with the House Small Business Committee on what relief to small businesses should look like. Rubio also discussed how the committee can help and encouraged the panelists to present their ideas on possible solutions. Rubio was able to reassure the committee of allocations promised by the president, that will be provided through local banks.
“We’re going to have to allow small businesses to use the funds they have borrowed (from the bank) to make payroll, to provide paid sick leave for employees that are hurt or employees that are sick or employees that frankly can’t come to work.”
Marco Rubio also addressed America’s dependency on China and how majority of our resources are produced in China. According to the census Bureau, China accounts for 88% of electric hand drill and saw imports, 87% of air conditioning machinery imports, 83% of hydraulic jacks and hoists, 72% for cell phones and its parts, 58% of forklifts, 51% of lithium ion batteries. This could mean a scarcity for American businesses during this Pandemic period as China has closed its borders in order to curb health risks. This hypothetically means that even if the pandemic were to end, the United states would suffer with a lack of resources until china decides to re-open its borders. This puts a strain on the supply chain of small businesses across the country.
Rubio indicated that the above scenario highlighted America’s over dependency on Chinese resources and the need to increase America’s self-sufficiency as it would improve America’s supply chain
‘First is there are the immediate consequence of not having the capacity to produce these essentials here at home, and small businesses are going to experience a great deal of economic pain as a result of supply chain disruptions.”
According to the senator, this gap in the supply chain will be felt in all sectors, specifically the pharmaceutical industry. With the lack of new chemical ingredients and medical equipment coming to America, the country will be left highly vulnerable in this pandemic period. The floor was given to Tim Morrison, a senior fellow at the Hudson Institute, where he specializes in Asia-Pacific security missile defense, nuclear deterrent modernization and arms control who has spoken extensively on the matter of national security and medical aspects of the supply chain.
Morrison recalls America’s decision to stop self-production of Penicillin in 2004 and the repercussions of relying on China for medical commodities, which include unsterilized surgical gowns as well as numerous instances of faulty drugs. According to Morrison, these instances indicate that American is at the mercy of China and left without a backup plan.
“What if the Chinese Communist Party decides to retaliate to these sovereign decisions by cutting off the shipment of medicines to the United States? Do you think it can’t happen? Ask the Japanese who lost access to rare earth elements from the People’s Republic of China in 2010 over a territorial dispute.”
Morrison proposed that the government should reroute their funds to support American producers and small businesses instead of combatting China for its position on the world stage as a top producer.
The floor was then given to Ms. Wynne Briscoe, acting directory for the Small Business Development Center in the southern Maryland region, who offered suggestions to the committee in order to provide more opportunities for small business in this time of uncertainty.
Briscoe posed the question of how the supply chain will affect American small businesses after the Epidemic is over, and what opportunities the government are giving small businesses, in order to fill up the gaps in the supply chain.
Briscoe identifies the current medical climate as an opportunity to rearrange the economy to fit small businesses and increase domestic manufacturing in order to reduce the US’s reliance on China.
“I’m recommending that you(congress) direct the Small Business Administration produce a nationwide list of companies. Let them self-identify of their supply chain concerns, those that have current supply chain concerns and those that forecast in the future of having supply chain concerns. From there it would be a self-identified list of Made-in-America products and services.”
Nevada Senator, Jacky Rosen, presented her concerns on small businesses in Nevada and the manner in which COVID 19 will affect their income.
“99% of businesses in Nevada are small businesses in support of, especially in the Southern Nevada area, in support those large businesses,” Said Rosen “They provide over 40% of the private jobs in our state.”
Rosen questioned how these small businesses should adapt to the new climate. Dr. Gerald Anderson responded by urging the government to give small business owners grants due to the slow-down in business traffic.
In conclusion, the panelists as well as the Senators agreed that the Corona virus has been detrimental to small businesses as well as the need to re-evaluate America’s trade relationship with China.
Advanced Reporting Times, Spring 2020 