Schumer asks SBA to defer repayment of COVID loans

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WASHINGTON – With COVID-19 Economic Injury Disaster Loan payments to the Small Business Administration expected to start next month, Senate Majority Leader Charles Schumer has asked Administrator Isabel Guzman to defer the period to give small business and nonprofits more opportunity to fully recover from the pandemic.

The SBA has approved 36,371 loans to Hudson Valley small businesses and nonprofits totaling over $4 billion.

The senator said that the latest Omicron wave and economic uncertainty due to rising costs and global supply chain disruptions have put the recovery of many small businesses in a vulnerable position, and that extending the payment pause would give small businesses “much-needed breathing room and temporary relief to0 survive and get back on their feet.”

The SBA loan program has been “a lifeline” for hundreds of thousands of New York small businesses and nonprofits struggling to stay afloat, Schumer said. However, with loans starting to come due next month, and many small businesses “are still not financially prepared to shoulder the burden of this looming cost.”