Rep. Axne addresses non- profit business concerns
The tourism industry is currently one of the hardest hit by the outbreak of COVID-19, as communities are experiencing a huge economic loss due to the drastic decreases in tourism numbers.
During the summer, many communities have had to cancel their festivals or dial them back to a one-day event. In Winterset alone, the loss of revenue from the cancellation of the John Wayne Birthday Celebration, bus tours which brought numerous tourists to town to view the Covered Bridges and the heartbreaking decision to cancel the fall Covered Bridge Festival will make a significant impact on the area economy.
Third District Congresswoman Cindy Axne stopped by a couple of Winterset businesses to see how the pandemic may have impacted their sector.
Her first stop was the Iowa Quilt Museum to see how they had been impacted as a non-profit organization. Volunteer Jerry Parkin told the Congresswoman that they had experienced good attendance during the summer. As with many non-profits Axne expressed concern regarding operating costs. Parkin explained that the museum had to remain at a certain temperature daily to preserve the quilts on display. Axne suggested the museum might look into the possibility of obtaining a grant, and said she would have a member of her staff look into the options available.
Julie Feirer was also in attendance during the Congresswoman’s visit to the museum. Feirer, representing the Chamber in the absence of Director Heather Riley, told Axne that the Chamber has struggled throughout the pandemic. Feirer explained it was hard to get people to come to the events during the virus outbreak.
The Chamber has been able to hold a few concerts in the local parks, though food vendors were not available. They have also struggled with finances in regards to the Chamber membership. As business owners are impacted, they don’t have the extra money to renew their memberships.
Feirer also mentioned the cancellation of the Covered Bridge Festival as another financial blow to the organization.
Axne agreed that the Chambers of Commerce need more support, and that some are able to make it because of the way their membership fees are structured. She acknowledged that some businesses who got the PPP funding may have not needed it and that governmentally they are looking into a similar package that would fit the needs of other businesses.
Coincidentally, Axne sent a letter urging members of the Congressional leadership to consider bipartisan legislation she is sponsoring to provide financial assistance for service industry businesses who are most vulnerable to long term effects of the coronavirus crisis. She is seeking to have the Reviving the Economy Sustainably Towards a Recovery in Twenty-twenty (RESTART) Act considered in ongoing negotiations over the next COVID-19 relief package.
“With events canceled, the service sector of Iowa’s economy is in for a prolonged and deeper burden from this economic downturn and pandemic,” she explained. “I’m proud to cosponsor the RESTART Act to provide specific assistance for the restaurants, hotels, live event venues that need help keeping their bills paid, and hope that congressional leadership will recognize this bipartisan measure is a needed addition to the next aid package.”
The RESTART Act would create a new, fully-guaranteed loan program to cover six months of a business’ normal expenses, including payroll and benefits, rent and utilities, and interest mortgage payments and scheduled debt for businesses that have lost more than 25 percent of their revenue due to COVID-19.
The loans would be structured to reach small businesses with fewer than 500 employees. Businesses with fewer than 5,000 employees are eligible for assistance. The program would also be open to most self-employed individuals, independent contractors, and nonprofits that are struggling to cope with steep declines in revenue.
Through her community visits, Congresswoman Axne tries to make sure that rural Iowa always has a voice.