PRESS RELEASE: Councilmember Ryu Introduces Wage Replacement Program for Small Businesses

LOS ANGELES - Councilmember David Ryu introduced a motion today to establish a wage replacement program in the City of Los Angeles. The motion, which seeks to use up to $100 million in CARES Act money, would help struggling small businesses hire back employees that lost their jobs during the COVID-19 pandemic and resulting economic crisis.

FOR IMMEDIATE RELEASE:  

August 11, 2020

Contact for Councilmember Ryu:

Mark Pampanin

mark.pampanin@lacity.org

213.407.7616

Councilmember Ryu Introduces Wage Replacement Program for Small Businesses

LOS ANGELES - Councilmember David Ryu introduced a motion today to establish a wage replacement program in the City of Los Angeles. The motion, which seeks to use up to $100 million in CARES Act money, would help struggling small businesses hire back employees that lost their jobs during the COVID-19 pandemic and resulting economic crisis.

“People are out of work and struggling to put food on the table,” Councilmember Ryu said. “We must do everything we can to keep people on payroll and keep our small businesses afloat. If we don’t do more to support Los Angeles workers, we risk a total collapse of the local economy and irreparable harm to countless families.”

Alexandra Suh, Executive Director of KIWA and a member of the Healthy LA Coalition, said "It is heartening to see the Los Angeles City Council leading and supporting both our vital small businesses and our city's workers so that we get through this crisis, and work hand in hand towards a more sustainable and just recovery."  

"Many of us know a small business, restaurant, or street vendor that didn’t get a PPP loan. Los Angeles has an opportunity to create a program specific to the needs of the most impacted entrepreneurs and workers," said Lyric Kelkar, Senior Associate at Inclusive Action for the City, member organization of the Healthy LA coalition. 

The motion, if passed, would seek to establish a program similar to the federal Paycheck Protection Program (PPP), but be specific to small businesses in the City of Los Angeles. That program provided money to businesses so that they could keep employees on their payroll, thus avoiding layoffs that hurt business and cut people out of a paycheck. 

The latest jobs report from City Controller Ron Galperin showed that job losses were severe in Los Angeles, which has so far lost more than 200,000 jobs during the pandemic. The losses were greatest in Council District Four, which lost 21,565 jobs, primarily in the information, accommodation, and food service industries.

Read the motion here.

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Assistant City Council President Pro Tempore David E. Ryu represents Los Angeles’ 4th Council District which includes Griffith Park, Sherman Oaks, Toluca Lake, Hollywood, Hollywood Hills, Los Feliz, Silver Lake, Miracle Mile, Hancock Park, Windsor Square, Larchmont and portions of Koreatown and Van Nuys.


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