NY CONGRESSWOMAN VELAZQUEZ INTRODUCES COVID-19 RELIEF BILL

How will small businesses fare during COVID-19 outbreak?

Today, House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) introduced the COVID–19 Relief for Small Businesses Act of 2020, comprehensive legislation that would provide relief to small businesses facing consequences from the ongoing COVID-19 outbreak.

“After speaking with my Committee colleagues and hearing firsthand of the struggles facing countless small businesses due to the coronavirus pandemic, I am introducing sweeping legislation to tackle the economic hardship and fallout facing our nation’s employers and workers,” said Chairwoman Velázquez. “This bill offers across the board solutions from channeling capital to small businesses in need by providing zero-interest direct loans, grants, and loan debt relief, to increasing access to federal contracts, and equipping entrepreneurial development centers with the technology they need to serve entrepreneurs remotely.”

Key components of the bill include:

• The creation of an SBA Business Stabilization Direct Loan Program that authorizes $100 billion to offer interest-free loans with up to 50% loan forgiveness to qualified employers.
• The authorization of $100 billion to provide up to $100,000 in direct grants for small businesses impacted by COVID-19. These grants would be targeted to businesses that have had to close their doors temporarily due to the outbreak.
• Immediate loan debt relief to current and new SBA borrowers.
• Expediting and streamlining the SBA’s economic injury disaster loan program to ensure small businesses can access cash easier and faster.
• The authorization of additional grant funding to allow SBA resource partners to ensure they can provide education and marketing materials to educate small business customers on the public health emergency and steps to protect the business and maintain operations.
• Amending several contracting provisions to provide more opportunities for small businesses affected by the outbreak to quickly and efficiently be awarded government contracts.

“All of our Committee members played an important role in crafting a response to this public health crisis,” said Chairwoman Velázquez. “These measures put hardworking Americans first by investing in the entrepreneurial spirit of this country not just through words, but action. As the House considers a major economic stimulus package, I urge my fellow lawmakers not to forget those hurting on Main Streets across the country because of this tragic pandemic.”