Resources For Small Business
Small businesses owners and those who are self-employed make up the backbone of our economy in NY-19. As a member of the House Small Business Committee, I am working to fight for our small businesses and the self-employed to make sure they have the resources they need during this challenging time.
Congress has now passed four bills so far to address this crisis. The first bill included an emergency supplemental funding bill with loans for small businesses affected by the virus, enabling the Small Business Administration to provide $7 billion in low-interest loans to affected businesses. The second bill included expanded unemployment insurance, nutrition assistance for children and seniors, emergency sick leave—including reimbursing small businesses for this cost. The third bill, the CARES Act includes more than $376 billion in relief for struggling small businesses, providing crucial access to grants and loans.
The CARES Act also includes a bill I introduced and fought for: the Small Business Repayment Relief Act. This ensures every small business with a qualified SBA loan automatically be relieved of their loan payments—including principal, interest, and fees—for the next six months. It provides $17 billion in federal funding for SBA to cover these payments without any action from small businesses.
The most recent bill provides $310 billion for the Paycheck Protection Program, with $60 billion set aside for community-based lending institutions. The bill also included $50 billion for the economic injury disaster loan program and $10 billion for the emergency grants. In addition, I fought to ensure farmers are eligible for EIDL, and the most recent package makes clear to farmers can access this program.
Small Business Economic Injury Disaster Loans and Emergency Grants
The SBA has declared an economic disaster in New York state. The SBA is currently processing existing economic injury disaster loans (EIDL). Once they process existing applications, they will open the portal for new applications.
Six months of SBA payments on qualified SBA Loan payments
The CARES Act includes the Small Business Repayment Relief Act, legislation I introduced. This triggers an automatic six month payment (covers principal, interest, and fees) by the Small Business Administration on all current and new qualified SBA loans.
No applications required, just immediate assistance for our struggling small business owners. Small business owners should contact their loan provider if they have any questions.
Paycheck Protection Program
This is a new SBA loan program for small businesses to immediately cover up to 2 months of payroll during the immediate crisis. Small and medium sized businesses of up to 500 employees, non-profits, independent contractors and self-employed workers are eligible for no-fee loans of up to $10 million, with repayment deferred for six months. The loans have a 1.00% fixed interest rate and a two-year maturity.
The loan will be forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. At least 75% of the forgiven amount must have been used for payroll. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Small businesses can apply through a qualified lender. For more information on the program and to find a qualified lender, please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.
New York State Small Business Development Center: http://www.nyssbdc.org/appointment.html
Additional Small Business Resources
- Small Business Owner's Guide to the CAREs Act
- Resource from the Small Business Committee: Federal Procurement Law: Emergency Disaster Acquisitions and the Covid-19 Pandemic
- Flow Chart: The Coronavirus Aid, Relief and Economic Security Act, CARES Act for Small Businesses
- Click here to find resources from the Centers for Disease Control and Prevention for businesses and employers.
If you have additional questions about the resources available, please contact our office at 845-443-2930.