Sending Office: Honorable Chris Pappas
Support Small Businesses — Cosponsor
H.R. 6324: The Too Small to Fail Act
Cosponsors: Rose (NY)*, Horn*, Norton*, Carson*, Wild*, Mucarsel-Powell*, Panetta*, Hayes*, Kuster*, Pingree*, Pocan, Lowenthal, Haaland, DeFazio, Raskin, Castro (TX), Wilson (FL)
As small businesses and non-profits face serious economic challenges from the ongoing Coronavirus outbreak, please join me in supporting a bill to address the urgent needs of main street small businesses.
In their current
Administrative Disaster Declarations, the SBA has set interest rates at 3.75% for small businesses and 2.75% for non-profit organizations, with terms up to 30 years. For many businesses, these rates are simply too high.
My bill would provide no-interest Economic Injury Disaster Loans (EIDL) to small businesses and non-profits affected by the coronavirus outbreak. By providing no-interest rate loans and more flexible terms on these working capital loans, we can help ensure
businesses and non-profits have the resources to make it through these uncertain times, without having to worry about burdensome interest payments in the future. Doing so would help make sure our small business economy is well-positioned to emerge from this
pandemic stronger than ever.
The legislation also allows for up to $15,000 in grants for small businesses (the CARES Act provides up to $10,000), distributed within three days after a business or nonprofit applies for an EIDL, so that they can receive immediate relief.
Specifically, my bill would:
- Dramatically expand the availability of zero-interest, zero-fee loans to affected small businesses by lowering the Economic Injury Disaster Loans interest rate to small businesses and nonprofits at 0% interest and provide at least $350
billion in loan authority to help businesses affected by the COVID-19 outbreak.
- Authorize SBA to provide up to $15,000 in grant funding for each small business or non-profit that applies for an EIDL loan, to be distributed within three days.
- Provide debt repayment relief for small businesses by giving the Small Business Administrator broad authority to defer payments on existing SBA loans for affected businesses.
- Waive the so-called “credit elsewhere” requirement for all affected small businesses, which currently limits SBA loan eligibility to businesses that would not otherwise have access to credit.
- Ensure sufficient funds to cover the administrative cost of this effort.
Please join me in advocating for more support and direct assistance for our nation’s small businesses and nonprofit sector so that they can chart a more certain path for themselves and their employees in the months and years ahead.
If you have any questions or would like to co-sponsor H.R. 6324, the Too Small to Fail Act, please contact Oliver Edelson (firstname.lastname@example.org) on my staff.
Member of Congress
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