Senator Rubio and Senator Collins Work to Empower Current Infrastructure

By: Pat Gouhin, Chief Executive Officer

As the devastation of COVID-19 continues to leave small businesses and non-profit organizations in its wake, Senator Marco Rubio, Senator Collins, and the Rubio-Collins Small Business Recovery Plan task force have been working around the clock to develop a non-partisan package to protect organizations.  The goal of the bill is to empower current infrastructure at the Small Business Administration for the Keeping Workers Paid and Employed Act.  Senators Rubio and Collins are calling for banks and credit unions to scale up their processes to meet the extraordinary needs we are currently facing. 

Details of 7(a) of the Small Business Act include:

Timing - March 1-December 31, 2020

Eligibility - businesses with 500 employees or less and non-profits

Loan Cap - $10,000,000 through 12/31/2020

What’s Included?

  • Funds are to be used for payroll support, rent and mortgage payments
  • Waive borrower and lender fees through 12/31/2020
  • Government guarantees 100% of the loan
  • Removal of statutory caps

The Angel Capital Association along with multiple other organizations signed a letter of support for this bill on Thursday, March 19, 2020.  Two specific areas were praised in the letter:

  1. The emergency loan program to support small businesses during the crisis, with loans made available through the private banks, supported with a federal guarantee.
  2. The emergency loan program clause that forgives a portion of the loan equal to an appropriate percentage of payroll for any business that keeps their employees on salary despite having to shut down.

See the full bill and letter of support here