'It's an economic war' – Warren Buffett urges Congress to extend relief for small businesses

  • "I think the country owes it to the millions of small-business people … just renew the PPP and get us to the end of the tunnel," Warren Buffett told CNBC's Becky Quick.
  • The window to apply for PPP loans expired earlier this year even with funds remaining in the program.
  • Late on Monday, a bipartisan group of lawmakers unveiled a stimulus proposal that includes about $300 billion to support small businesses.
  • "Congress should act," Buffed added.

Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, urged Congress to extend aid to small businesses as they continue to struggle through economic shutdowns used to fight 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 asked lawmakers to extend the Paycheck Protection Program.

"I think the country owes it to the millions of small-business people … just renew the PPP and get us to the end of the tunnel," Buffett said. "When we went into World War II, a lot of industries were shut down; everything went to the defense production. Well, we've shut down a lot of people in this particular induced recession and others are prospering."

The window to apply for PPP loans expired earlier this year even with funds remaining in the program. However, Congress has been in a stalemate for months in its negotiations for new government aid, putting pressure on businesses, particularly the smaller ones.

Late on Monday, a bipartisan group of lawmakers presented 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 social distancing restrictions force them to limit capacity in their establishments. Some businesses have been forced to shut down temporarily — and permanently, in some cases — because of these limitations and a lack of stimulus.

Without additional aid for small businesses, Congress is "in the process of dashing the dreams of tens of thousands," Buffet said. "Congress should act."

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