March 19, 2020

By: Caity Witucki
Contributing Editor

BREAKING NEWS: Senate Proposes Keeping Workers Paid and Employed Act — $300 Billion in 7(a) Loans, Increases 7(a) Limits to $10 Million, $1 Million Express

Thursday afternoon, the Senate introduced another emergency stimulus package to aid small businesses impacted by the ongoing coronavirus outbreak.

The proposed stimulus package, includes:

  • $300 billion in SBA 7(a) loans
  • 100% government-guarantees through 12/31/20, then reverts
  • Up to $10MM in loan size
  • Up to $1MM in Express loan size
  • Currently eligible SBA borrowers AND not-for-profits
  • Delegated (underwriting) authority — means expedited processing
  • Borrowers can get this loan OR an EIDL (disaster) loan, not both
    Waives borrower and lender guarantee fees
  • Provides a “process” by which borrowers will be eligible for loan forgiveness in an amount equal to their payroll cost and costs related to debt obligations for the period between 3/1/20 and 6/30/20 – amount of forgiveness will be reduced proportionally by the number of employees laid off during this time, excluding employees making in excess of $100k in this calculation
  • Lenders must verify payroll costs

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The Keeping Workers Paid and Employed Act