Introduction of the Small Business Covid-19 Debt Relief Extension Act
Floor Speech
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Mr. CARSON of Indiana. Madam Speaker, the small business loan debt relief provision, as passed in the CARES Act, has expired with money still left in the fund. As we all know, small businesses have greatly suffered due to the COVID-19 pandemic. According to a recent Washington Post article, one in five small businesses have closed this year, with many more expected. For the small businesses that remain open, the SBA loan debt forgiveness has proven to be a lifeline. The SBA has paid 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans, as well as new 7(a), 504, and Microloans.
The COVID-19 pandemic is putting extraordinary strain on our smallest businesses--the very businesses who are the backbone of our economy. Small businesses have taken the biggest hits and need continued direct relief during this unprecedented time. That's why I have been fighting to provide relief through the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL), and the SBA debt relief program. These programs have proven to be effective to mitigate the consequences of the pandemic, however, small businesses continue to need our support and we must not turn our backs on them.
Local economies are re-opening, but an expected second COVID-19 wave means small business owners will face additional uncertainties and burdens in the coming months. That is why I am introducing the Small Business Debt Relief Extension Act to offer small business owners up to a 6-month extension on the debt relief they are receiving on their 7(a), 504, and Microloans. Additionally, my bill ensures that the entirety of the $17,000,000,000 appropriated to this program in the CARES Act be used for its intended purpose. The bill accomplishes this in two ways:
Businesses who are currently receiving or have (over the past 6 months) received the subsidy be granted a 6-month extension for a total of 12 months of debt relief; and Businesses who do not currently have a SBA loan and that apply up to March 30, 2021, receive a 6 month subsidy.
I urge all of my colleagues to join me in supporting the Small Business Debt Relief Extension Act.
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