Testimony - Chris Ferruso (NFIB), House Bill 215, Economic and Workforce Development Committee

Summary

Proponent testimony on House Bill 215, the Business Fairness Act, given to the House Economic and Workforce Development Committee by Chris Ferruso, Legislative Director for NFIB in Ohio. The testimony states the bill would allow a business that has been required to close or limit operations by a government order to reopen or remain open if it can comply with the safety precautions required of businesses permitted to stay operational. It reports a survey of Ohio NFIB members conducted in mid-September, stating that 75 percent have taken a Paycheck Protection Loan (PPP) and 88 percent have used up the entirety of their PPP loan. It urges the committee to support and quickly pass House Bill 215.

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Full text

Chairman Edwards, Vice-Chair Powell, Ranking Member Upchurch, and members of the House Economic
and Workforce Development Committee my name is Chris Ferruso and I serve as Legislative Director for
NFIB in Ohio. Thank you for the opportunity to provide proponent testimony for House Bill 215. On
behalf of the nearly 22,000 governing members in Ohio, we applaud Representatives Cross and Wilkin
for sponsoring and reintroducing this important legislation. The Business Fairness Act is a top legislative
priority for NFIB.

By way of background, NFIB members come from all industry sectors in all 88 counties across Ohio. Our
typical member employs 15 or fewer and has less than $2 million in gross receipts. The diversity of our
membership runs the spectrum of business operations from sole-proprietors operating out of their
homes to large manufacturers that employ hundreds.

House Bill 215 is simple in its intent – to allow a business that has been required to close or limit
operations as a result of a government order due to no fault of their own be able to reopen or remain
open if that business is able to comply with the safety precautions required of businesses permitted to
stay operational.

When the initial Ohio Department of Health order to shutter businesses was issued, our members were
in the same state of confusion and uncertainty surrounding the COVID-19 pandemic as most. There was
an understanding of the need to allow our government leaders to react to a public health situation not
recently experienced. Our members that were deemed “non-essential” complied with orders while
awaiting better knowledge of just what our state, our country, and our world were facing. They watched
other businesses remain operational able to recognize revenue, pay their employees, and generally
conduct business as usual as recommendations from health experts on how to avoid transmission and
contraction of the virus continued to be issued, amended, and reversed. However, frustration soon
began to mount as some of our members had to remain closed while other “essential” businesses,
selling some of the same or similar products, could keep their doors open.
The state and federal government acted quickly to assist businesses and individuals who were shuttered
or left without employment. We applaud the legislature and administration for the steps taken to try
and lessen the economic impact of business closures.

The economic consequences of the pandemic will continue to be felt, likely, unfortunately for years. I
have previously shared with this committee the results of a survey we conducted late last year. I have
included this information below for your reference. We are in the process of arranging another survey
as a follow up and will share the results with this committee when completed.

The data below is based upon a survey we conducted in mid-September. The respondents are all Ohio
NFIB members. Eighty-four percent have 30 or fewer employees.

        -   75 percent have taken a Paycheck Protection Loan (PPP) from the federal government
        -   88 percent have used up the entirety of their PPP loan.
        -   70 percent indicated they would utilize a grant program offered by the state to be
            reimbursed for expenses not covered by a PPP or other loan.
        -   Over 50 percent indicated a need for such a grant of between $10,000 - $50,000.
        -   Almost one in three members indicated they had to close their businesses because of
            government orders.
        -   Of those, 54 percent were shuttered between one and three months.
        -   Over half of respondents indicate year-over-year revenue declines of 20 percent or greater
            and 15 percent are experiencing revenue decline over 50 percent!
        -   A recent NFIB national survey indicates 52 percent of our members who took a PPP loan
            anticipate needing additional financial assistance over the next 12 months.
        -   That same survey indicates one in five will have to close their doors permanently if
            economic conditions do not improve in the next 6 months!

Hindsight is 20/20 and we know a lot more now about the virus than we did in March. We know taking
certain precautions such as social distancing, washing and sanitizing of hands and common touch
surfaces, wearing personal protective equipment (PPE), and providing barriers all help to reduce the
spread. Small businesses have responded and taken these steps; providing PPE to employees and
customers and retrofitting their businesses to adjust to health recommendations.

At the onset of the pandemic, some of these resources were hard to come by. Our members tell us that
this is no longer the case. In fact, we have members that altered their normal operations to produce
PPE and other materials to help combat the spread. Again, small businesses stepped up to do their part,
as they typically do, to assist in protecting their communities. We have also heard from both state and
national experts that businesses are not the main sources of spread. As such, and because small
business is a crucial component of the economy, we must ensure they may continue to provide jobs,
their important products and services, as well as tax revenue. However, they cannot do this if they are
shut down by the government. House Bill 215 will make certain our small businesses can remain
operational.

I do want to take a moment to share with this committee comments we received from a couple of our
members in response to this bill:

        “I came within 1 week of losing my business and had I not petitioned the local health department
        and proved I could meet the requirements for safety of the public and myself, I would have gone
        under. Instead, they agreed to allow me to reopen with certain provisions in place. I cannot
        afford to go through this again! The loss of income would have put me in a situation where I
        would have had to become dependent on the government for assistance to meet my needs.... that’s
        not what the state needs either! For me it would have been a devastating loss of something I had
        worked 9 years to build at the time.”
This statement is a demonstration of our members willingness to do what is required to remain open.
They need to know the rules and they will comply.

        “I own a dental office and were deemed non-essential. The oral health of a person affects their
        overall health. Infection left untreated for weeks/months can have a devastating effect on a
        person's health. I live in a small community and the local businesses help keep this community
        going. When you close small businesses in a small town, you cripple the town.”
This member reiterates what we know and is commonly referenced by policymakers: small business is
the backbone of the economy.

As I mentioned earlier, House Bill 215 is simple in its purpose. It allows any business that can meet the
required safety precautions to remain open. Every one of our members believes their business is
essential. I suspect the same is true for all your small businesses. The government should not be picking
winners and losers. The playing field must be level. Although there may be disagreement about what
constitutes appropriate safety precautions, each business must have the opportunity to comply and thus
be allowed to remain open. For our members, for all businesses, this is what they deserve! House Bill
621, similar legislation, passed the Ohio House last year on a bipartisan vote of 77-10. We urge you to
support and quickly pass the Business Fairness Act, House Bill 215.

Thank you Mr. Chairman and members of the committee, I would happy to try and address any
questions.


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