U.S. Rep. Antonio Delgado, D-19, yesterday joined U.S. Sens. Chris Coons and Ben Cardin, Democrats from Delaware and Maryland respectively, in introducing the Small Business Debt Relief Extension Act to extend debt relief due to expire at the end of the month through next February.
Hundreds of thousands of organizations nationwide have taken advantage of debt reliefs in his Small Business Repayment Relief Act that was part of the CARES Act, Delgado said.
“Still, it is clear from my conversations with owners and employees across NY-19 that folks need more support,” he said. The new bill allows “more entrepreneurs to access relief and further extending qualified loan payments for businesses hardest-hit.”
The Small Business Debt Relief Extension Act will:
- Extend debt relief payments for all small business with an SBA-backed loan for five months, through February 2021. That includes 7(a) loans, 504 loans, and microloans.
- Provide an additional seven months of debt relief for highly vulnerable businesses, including all those with a Community Advantage or microloan and those with a regular 7(a) or 504 loan that operate in the sectors hardest-hit by the pandemic: educational services; arts, entertainment, and recreation; accommodation and food services; and charter buses.
- Extend the availability of debt relief on new SBA-loans for a full year, to include those approved through September 2021. This will provide an ongoing incentive for small business growth and job creation in all sectors.
- Ensure debt relief benefit is associated with no tax liability for any participating business.
- Improve program integrity and transparency, by increasing required SBA reporting to Congress and communication with borrowers.
- Require no new spending by Congress, as it will draw upon funds already appropriated under the CARES Act.