Warren Buffett, the legendary investor and president of Berkshire Hathaway, urged Congress to extend aid to small businesses as they continue to fight for the economic shutdowns used to combat the coronavirus pandemic.
“It’s an economic war,” Buffett told CNBC’s Becky Quick on “Squawk Box,” speaking alongside Goldman Sachs CEO David Solomon about helping small businesses. Specifically, Buffett called on lawmakers to expand the Wage Protection Program.
“I think the country owes it to millions of small businesses … you just need to renew the PPP and get to the end of the tunnel,” Buffett said. “When we went into World War II, a lot of industries shut down; it all went into defense production. Well, we shut down a lot of people in this particular induced recession and others thrive.”
The window to apply for PPP loans expired earlier this year, even with funds remaining in the program. However, Congress has been at a standstill during its negotiations for new government aid, putting pressure on businesses, especially smaller ones.
On Monday afternoon, a bipartisan group of lawmakers unveiled a $ 908 billion fiscal stimulus package. The proposal includes about $ 300 billion to support small businesses, including restaurants and entertainment venues.
Small businesses have struggled to stay afloat during the pandemic, especially restaurants, as restrictions on social distancing force them to limit capacity to their establishments. Some companies have been forced to close temporarily – and permanently, in some cases – due to these limitations and the lack of incentives.
With no additional help for small businesses, Congress “is in the process of shattering the dreams of tens of thousands,” Buffet said. “Congress should act.”
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