March 10, 2020
By: Mary Miller & Caity Witucki
Contributing Editors, Hot Topic Tuesday
Hot Topic Tuesday – Legislation Passes for SBA COVID-19 Emergency Funding
Last Friday the Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) was signed by the President and became law. The legislation provides $8.3 billion in new funding to support public health services and businesses negatively impacted by the COVID-19 outbreak. In addition to providing public health agencies with $950 million, the new appropriations are estimated to allow the SBA to provide $7 billion in loans to small businesses.
“For many American small businesses, the outbreak of coronavirus means fewer customers, gaps in supply chains, and workforce reductions,” says House Small Business Committee Chairwoman, Nydia M. Velázquez . “That is why […] the House acted to open critical economic injury loans to small businesses dealing with the consequences of the coronavirus outbreak. These low-interest loans will inject much-needed capital into Main Street businesses as they recover from the hardship of operating during a public health crisis.”
“I’m grateful that this bill includes a provision […] to deal with some of the economic impacts of this.” U.S. Representative Derek Kilmer said in a press release last week. “I’ve already heard some export-dependent manufacturers have been negatively impacted by this situation. It’s important for the federal government to have the backs of our small businesses by providing this assistance.”
The SBA website has not yet been updated with specific information about the loans and lending plans available for coronavirus-related small business recoveries. However, it is likely that the SBA will offer the low-interest loans as part of its established Small Business Disaster Loan program.