summary
Introduced
03/23/2020
03/23/2020
In Committee
03/23/2020
03/23/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend the Small Business Act to provide no interest rate loans to small businesses and non-profit entities impacted by the coronavirus (COVID-19), and for other purposes. This bill establishes requirements for, and revises components of, loan programs of the Small Business Administration (SBA) to provide economic relief to small businesses affected by COVID-19 (i.e., coronavirus disease 2019). Specifically, the SBA must waive the requirement that small businesses affected by COVID-19 be unable to find credit elsewhere in order to be eligible for SBA loans, and it must provide loans made in response to COVID-19 at no interest rate. In addition, the SBA is authorized to temporarily defer payments on any SBA loan for a small business that is affected by COVID-19. During the period from January 31, 2020, and ending on December 31, 2020, eligible small businesses that apply for an emergency disaster loan in response to COVID-19 may request that the SBA provide an advance of up to $15,000 within three days of receiving the application. Such advance may be used for any allowable purpose, including (1) providing paid sick leave to employees who are unable to work due to direct effects of COVID-19, (2) maintaining payroll to retain employees during business disruptions or substantial shutdowns, and (3) making rent or mortgage payments. Applicants shall not be required to repay any amounts of such advance, even if they are subsequently denied an emergency disaster loan. Further, under certain conditions, such advance may also be taken into consideration when determining forgiveness for a loan to meet payroll costs.
AI Summary
This bill, the Too Small to Fail Act, aims to provide economic relief to small businesses and non-profit entities impacted by the COVID-19 (coronavirus) pandemic. The key provisions of the bill include:
1. Waiving the requirement that small businesses affected by COVID-19 be unable to find credit elsewhere in order to be eligible for Small Business Administration (SBA) loans, and providing these loans at no interest rate.
2. Authorizing the SBA to temporarily defer payments on any SBA loan for a small business affected by COVID-19.
3. Allowing eligible small businesses that apply for an emergency disaster loan in response to COVID-19 to request an advance of up to $15,000 within three days of their application, which they would not have to repay even if they are denied the loan. This advance can be used for purposes like paying employees, maintaining payroll, and making rent or mortgage payments.
4. Providing $350 billion in additional funding for the SBA's Disaster Loans Program Account to cover the cost of these interest-free loans and advances.
The bill is intended to provide immediate financial assistance to small businesses and non-profits that have been significantly impacted by the ongoing COVID-19 crisis.
Committee Categories
Business and Industry
Sponsors (22)
Chris Pappas (D)*,
André Carson (D),
Joaquin Castro (D),
Val Demings (D),
Debra Haaland (D),
Jahana Hayes (D),
Kendra Horn (D),
Sheila Jackson-Lee (D),
Ann Kuster (D),
Al Lawson (D),
Alan Lowenthal (D),
Debbie Mucarsel-Powell (D),
Eleanor Holmes Norton (D),
Ilhan Omar (D),
Jimmy Panetta (D),
Chellie Pingree (D),
Mark Pocan (D),
Jamie Raskin (D),
Max Rose (D),
Bonnie Watson Coleman (D),
Susan Wild (D),
Frederica Wilson (D),
Last Action
Referred to the House Committee on Small Business. (on 03/23/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/6324/all-info |
| BillText | https://www.congress.gov/116/bills/hr6324/BILLS-116hr6324ih.pdf |
| Bill | https://www.congress.gov/116/bills/hr6324/BILLS-116hr6324ih.pdf.pdf |
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