WASHINGTON – Congressman Antonio Delgado (D, Kingston) has introduced the Small Business Debt Relief Extension Act that would extend debt relief for small businesses that is set to expire at the end of September.
The Small Business Debt Relief Extension Act would:
- Extend debt relief payments for all small business with an SBA-backed loan for five months, through February 2021. That includes 7(a) loans, 504 loans, and microloans.
- Provide an additional seven months of debt relief for highly vulnerable businesses, including all those with a Community Advantage or microloan and those with a regular 7(a) or 504 loan that operate in the sectors hardest-hit by the pandemic: educational services; arts, entertainment, and recreation; accommodation and food services; and charter buses.
- Extend the availability of debt relief on new SBA-loans for a full year, to include those approved through September 2021. This will provide an ongoing incentive for small business growth and job creation in all sectors.
- Ensure debt relief benefit is associated with no tax liability for any participating business.
- Improve program integrity and transparency, by increasing required SBA reporting to Congress and communication with borrowers.
- Require no new spending by Congress, as it will draw upon funds already appropriated under the CARES Act.
Sponsoring the bill in the Senate are Chris Coons DE and Ben Cardin (MD).