Warren Buffett stresses the immense challenges facing small businesses and calls on Congress to approve more aid

Warren Buffett

REUTERS/Rebecca Cook

• Warren Buffett emphasized the devastating impact of the pandemic on small businesses and urged lawmakers to approve more financial aid during a CNBC interview on Tuesday.
• The famed investor and Berkshire Hathaway CEO described the current situation as an "economic war," and warned authorities are "dashing the dreams" of tens of thousands of small-business owners.
• "The boat's going down," Buffett said. "They need help now."
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Warren Buffett underscored the enormous challenges facing small businesses and called on Congress to approve more financial aid for them in a rare interview on CNBC's "Squawk Box" on Tuesday.

"The boat's going down," the billionaire investor and Berkshire Hathaway CEO said. "They need help now."

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"We are in the process of dashing the dreams that will turn into the buoys for thousands, or tens of thousands, of people," Buffett continued, pointing to restaurants, gyms, and brick-and-mortar retailers that have been forced to close for months to slow the spread of the COVID-19 pandemic. "They've put everything they've got into the businesses they're in. Congress should act."

"It's an economic war," he added. " It would be so foolish not to follow through on this."

Goldman Sachs CEO David Solomon also took part in the interview. He warned against allowing more companies to fail with a nationwide rollout of vaccines around the corner.

"While you can see the finish line, I think a lot of these small businesses need help getting across the finish line," the banking chief said.

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Buffett's latest comments echo those he made at a Goldman Sachs 10,000 Small Businesses event in November, according to a transcript viewed by Business Insider.

The investor - who sits on the organization's advisory council - described the pandemic's threat to small businesses as a "hurricane," praised the US government's initial response to the pandemic, and reiterated his faith in a bright future for the country.

Buffett has stayed out of the spotlight since Berkshire's annual meeting in May, but his company has been busy this year. It sold its stakes in the "big four" US airlines and slashed its financial holdings in the second quarter, only to go on the offensive in the third quarter and announce more than $35 billion worth of investments.

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