Washington, D.C. – U.S. Senators Susan Collins (R-ME), Marco Rubio (R-FL), and Jim Risch (R-ID) introduced the Small Business Access to Recovery Capital Act, a federal relief package that builds on the success of the bipartisan Paycheck Protection Program (PPP), as well as other small business relief programs that were included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation would provide expanded relief measures to the 7(a) loan program for one year to help businesses cope with challenges posed by the COVID-19 pandemic.
“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 Susan 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 provide additional assistance for small businesses to weather this public health and economic crisis.”
“During my time as Chairman of the Senate Small Business Committee, I was proud to partner with my colleagues to help our nation’s small businesses and the workers they employ survive the COVID-19 pandemic,” said Senator Marco Rubio. “The SBA’s 7(a) loan program is critical in providing flexible working capital to small businesses in need. This bill would provide relief measures to ensure that firms can access the long-term loans needed for financial stability as they recover from the economic impacts of the pandemic. I am proud to partner with my colleagues to make this program meet the needs of today’s small businesses.”
“Idaho’s small businesses need access to capital to keep their doors open and their employees paid,” said Senator Jim Risch. “This common-sense bill will make low-interest loans available to the small businesses that power our communities.”
The Small Business Access to Recovery Capital Act would expand small business’ access to the 7(a) Loan Guaranty program for one year by:
· Waiving borrower and lender fees;
· Increasing the government guarantee to 95%; and
· Increasing the maximum loan value from $5 million to $10 million.
Click HERE to read the full text of the bill.