Congressman Marc Veasey (TX-33) Leads Letter Asking For Relief for Service Industry Small Businesses

WASHINGTON, DC – Congressman Marc Veasey (TX-33) sent a letter to President Trump and the Small Business Administration asking for help to inject liquidity that provides much-needed relief into small businesses in the service industries that rely on travel and tourism. A key reason for the disproportionate impact upon these small businesses relates to a business model that is aided by advanced payments by customers for a service or experience not yet delivered. In addition to the dramatic decrease in future revenue for these small businesses, they will soon suffer a second hit to their bottom line when they must return payments to customers for services or experiences that they can no longer deliver due to cancelations or travel restrictions.

That is why it is imperative to inject liquidity into these small businesses immediately to ensure that they can continue to pay their employees during this economic crisis. Additionally, the government must permit these small businesses to incorporate the costs of certain liabilities – such as refunds to a consumer for a service that they were unfortunately never able to deliver – when applying for an emergency SBA loan or other aid program. This will provide these small businesses with the capital they need to honor contracts with their consumers, which in turn ensures that consumers are protected and reimbursed for past purchases.

"The success of our nation's robust tourism and travel industries depends on services from businesses of all sizes," Congressman Veasey (TX-33). "That is why I am proud to spearhead this letter that asks our Administration to provide capital to these industries and ensure their employees are supported during this international pandemic."

The letter comes on the heels of Congressman Veasey's introduction of H.R. 6320, the Small Contractor Stability Act of 2020, that provides economic relief and flexibility to small business federal contractors—underscoring his commitment to helping small businesses and working families during this time.