Howard Schultz pushes coronavirus "transformation" loans for small businesses

Howard Schultz — the Starbucks chairman emeritus, who has been quiet since dropping out of the presidential race in September — announces on Medium this morning that he'll push for "transformation" loans for small business.

What Schultz is saying: He states that some of the country's independent restaurants are "dismayed" after qualifying for the Trump administration's Paycheck Protection Program since they have to use it specifically to pay employees or risk the grant becoming a loan.

"We need a Marshall Plan for small businesses that begins with providing federally backed loans that cover what it will cost to reopen and reinvent themselves for the COVID economy. These expenses include things like buildouts in workplaces and retail spaces to accommodate social distancing; regular virus testing for customers and employees; hiring and training; reconnecting or redeveloping supply chains; and converting products and services to meet evolving customer demands."

"These "transformation" loans should operate like start-up financing, but be longer-term, lower interest, include one year of no payments, and a portion that’s forgiven. A new federal facility should be established to purchase the loans from banks, removing the loans’ risk to banks and speeding their flow."

Go deeper: Small businesses struggle to get cash