Senator Hassan Statement on Introducing New Legislation to Suspend SBA Loans for 6 Months, Provide Financial Reprieve to NH Small Businesses Financially Impacted by Coronavirus
Legislation Comes as SBA Approves NH’s Emergency Declaration so Resources are Available for Granite State Businesses, Heeding Calls from NH Congressional Delegation
WASHINGTON – U.S. Senator Maggie Hassan issued the following statement after joining Senator Jeanne Shaheen and other colleagues in introducing legislation to ensure every small business with a loan from the Small Business Administration (SBA) would be relieved of their loan payments—including principal, interest, and fees—for the next six months. The Small Business Debt Relief Act of 2020 would be a lifeline for a wide range of American small businesses fighting for their survival over the coming months.
“Small businesses are facing immense challenges as a result of the COVID-19 pandemic,” Senator Hassan said. “This bill would provide them some relief by allowing them to temporarily forego repaying SBA loans. While this is a good step, as Congress works on further bipartisan measures to respond to this crisis, it is essential that the next legislation takes additional, significant action to support our small businesses.”
Yesterday, Small Business Administrator Jovita Carranza signed New Hampshire’s emergency declaration to allow Granite State small businesses to be eligible for the full suite of emergency resources through the SBA, as firms mitigate financial hardships due to the spread of the coronavirus. The New Hampshire delegation called on the SBA earlier this week to approve the emergency declaration.
The Small Business Debt Relief Act would assist borrowers in three major SBA lending programs:
- The 7(a) Loan Guarantee Program consists of $95 billion of outstanding loans. The two industries with the largest share of that volume are restaurants and hotels, which are among the hardest-hit by COVID-19. Child care centers, dental practices, and medical practices also rely heavily on the program.
- The 504 Certified Development Company loan guarantee program provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery and microloan programs. The total of outstanding 504 loans is $26 billion.
- The Microloan program provides loans of up to $50,000 to small businesses and nonprofit child care centers, via nonprofit intermediary lenders. The total of outstanding microloans is more than $560 million.
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