Photo Courtesy of Sen. Gillibrand’s Office
U.S. Sen. Kirsten Gillibrand
By Forum Staff
Senators recently called on Congress to pass legislation to extend the Small Business Debt Relief Program.
According to Sen. Kirsten Gillibrand (D-N.Y.), to date, the program has delivered relief to 320,000 small businesses heavily concentrated in the service industries hardest hit by the pandemic. The Small Business Debt Relief Program was authorized under the CARES Act with $8 billion for America’s smallest, most at-risk employers. The program provides six months of principal, interest, and fee payments on all preexisting, deferred, and new 7(a) loans, 504 loans and microloans to those unable to make their payments.
Gillibrand indicated on Thursday that she has cosponsored the Small Business Debt Relief Extension Act to extend this debt relief through at least February 2021 for all borrowers, and the bill proposes additional extensions for businesses struggling the most.
Specifically, the Small Business Debt Relief Extension Act also would:
- Provide an additional seven months of debt relief for highly vulnerable businesses, including all those with a Community Advantage or microloan and those with a regular 7(a) or 504 loan that operate in the sectors hardest hit by the pandemic: educational services; arts, entertainment, and recreation; accommodation and food services; and charter buses.
- Extend the availability of debt relief on new SBA-loans for a full year, to include those approved through September 2021.
- Ensure debt-relief benefit is associated with no tax liability for any participating business.