Congress Expected to Approve Additional Funding for SBA Loan ProgramsPosted on Apr 21, 2020 in COVID-19, News
Senator Brian Schatz announced today that the U.S. Senate is set to pass a new coronavirus economic recovery package. The bipartisan deal includes billions in new funding to replenish small business relief programs, providing more Hawaiʻi small businesses with a chance to access federal dollars.
“Many small businesses in Hawaiʻi were unable to access the first round of PPP funding, so this additional $310 billion will help those who didn’t get their loan approved in time,” said U.S. Senator Brian Schatz (D-Hawai‘i), a member of the Senate Banking Committee.
The funding includes $310 billion to replenish the Small Business Administration’s Paycheck Protection Program (PPP), first established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program provides small employers – including restaurants, hotels, and non-profits – with forgivable loans to maintain their existing workforce and help pay for other expenses like rent, mortgage, and utilities.
To help target smaller, family-owned businesses that were unable to access PPP funds before it ran out, the new funding also includes $60 billion specifically for small businesses and non-profits not served by a large national bank. This fund will help ensure employers in rural areas or those without an existing relationship with a large lender will have access to these funds and will no longer need to compete with larger, well-established businesses.
The bill also provides $50 billion for the SBA’s Economic Injury Disaster Loan Program, which will support an additional $350 billion in disaster loans; and $10 billion for emergency advances of up to $10,000 to small businesses and non-profits harmed by COVID-19.