Delgado Bill extends corporate debt relief until February 2021
US Representative Antonio Delgado, D-19, joined the Sens yesterday. Democrats of Delaware and Maryland, Chris Coons and Ben Cardin, respectively, to introduce the Extended Small Business Debt Relief Act to extend debt relief that expires at the end of the month. until next February.
Hundreds of thousands of organizations nationwide took advantage of debt relief in its Small Business Repayment Relief Act that was part of the CARES Act, Delgado said.
“Yet it is clear from my conversations with the owners and employees of NY-19 that people need more support,” he said. The new bill allows “more entrepreneurs to access relief and further expand qualified loan payments for the hardest hit businesses.”
The Small Business Debt Relief Extension Act:
- Extend debt relief payments for all small businesses with an SBA-backed loan for five months, until February 2021. This includes 7 (a) loans, 504 loans, and microloans.
- Provide an additional seven months of debt relief to very vulnerable businesses, including all those benefiting from a community benefit or microcredit and those benefiting from a regular 7 (a) or 504 loan that operate in the most vulnerable sectors. hardest hit by the pandemic: educational services; arts, entertainment and recreation; accommodation and catering services; and charter buses.
- Extend the availability of debt relief on new SBA loans for a full year, to include those approved until September 2021. This will provide a continued incentive for small business growth and job creation across the board. sectors.
- Make sure the debt relief benefit is not associated with any tax liability for the participating businesses.
- Improve the integrity and transparency of the program, by increasing the reporting required by the SBA to Congress and communication with borrowers.
- Does not require any new spending from Congress as it will use funds already allocated under the CARES Act.