The bill would complement the successful Paycheck Protection Program that was co-authored by Senator Collins
Washington, D.C. – U.S. Senator Susan Collins (R-ME), a member of the Small Business Task Force, joined Senators Marco Rubio (R-FL), Jim Risch (R-ID), and Josh Hawley (R-MO) in introducing the Small Business Access to Recovery Capital Act. The legislation would provide expanded relief measures to the 7(a) loan program for one year to help small businesses cope with challenges posed by the COVID-19 pandemic.
The Small Business Access to Recovery Capital Act would extend additional assistance to small businesses on top of assistance they may have received through the Paycheck Protection Program (PPP) Senator Collins co-authored, which supported millions of small businesses and jobs across the country. Qualifying small businesses would also be eligible for a second PPP forgivable loan under separate legislation authored by Senators Collins and Rubio.
“Small businesses are the engine of our economy, but the COVID-19 pandemic is tragically forcing many families to close the doors to their small businesses that they have spent years or even generations to build,” said Senator Collins. “As the co-author of the Paycheck Protection Program, I have worked to help small businesses stay afloat and continue paying their employees. This bill would complement the PPP by providing expanded relief under SBA’s 7(a) loan program to help small businesses weather this public health and economic crisis.”
The Small Business Access to Recovery Capital Act would expand small businesses’ access to the 7(a) Loan Guaranty program for one year by:
· Waiving borrower and lender fees;
· Increasing the government guarantee to 95%;
· Increasing the maximum loan value from $5 million to $10 million; and
· Waiving debt repayment of principal, interest, and fees for any new loans made under the 7(a) program for one year.
Senator Collins is a longtime champion of small businesses, and she recently received the Guardian of Small Business Award from the National Federation of Independent Business. The Small Business Access to Recovery Capital Act would build on the actions Senator Collins has taken to support small businesses during the pandemic. Earlier this year, Senators Collins, Rubio, Ben Cardin (D-MD), and Jeanne Shaheen (D-NH) co-authored the PPP to help small employers stay afloat and continue paying their workers during the COVID-19 pandemic. Since its launch in early April, more than 28,000 Maine small businesses and self-employed individuals have received nearly $2.3 billion in forgivable loans, helping to support more than 250,000 jobs throughout the state.
Click HERE to read the full text of the Small Business Access to Recovery Capital Act.