(U.S. Senator Jim Risch Press Release, October 20, 2020)
WASHINGTON – U.S. Senators Jim Risch (R-Idaho) and Marco Rubio (R-Fla.), former Chairman and Chairman of the Senate Committee on Small Business and Entrepreneurship, along with Senators Susan Collins (R-Maine) and Josh Hawley (R-Mo.), introduced 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 businesses cope with challenges posed by the COVID-19 pandemic.
“Until Congress can pass comprehensive COVID-19 relief, small businesses need access to capital to keep their doors open and their employees compensated,” said Risch. “This common-sense legislation will make low-interest loans available to Idaho’s small businesses who are unable to access lines of credit until additional relief is available.”
“The SBA’s 7(a) loan program is critical in providing flexible working capital to small businesses,” said Rubio. “These relief measures would ensure that firms can access long-term loans that provide much needed 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.”
“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 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 bipartisan bill would provide additional assistance for small businesses to weather this public health and economic crisis.”
“Small businesses are the backbone of our economy, and it is vital Congress pass legislation to provide relief to them and working families who have suffered thanks to the coronavirus pandemic,” said Hawley. “This legislation will expand access to working capital for small businesses through the 7(a) lending program to help keep businesses afloat and secure wages for their employees.”
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%;
- 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.
The bill text can be found here.