PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Applauds “Bold” Thinking Behind Rubio-Collins Small Business Capital Infusion Package

By at 19 March, 2020, 8:38 am

NEWS

For Immediate Release

Washington, D.C. – On March 18, Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business & Entrepreneurship, outlined the contours of the “Restoring Economic Security, Endurance and User Endurance Act (RESCUE) Businesses Act” at a press event, new legislation he is finalizing that will get small businesses the capital they need to survive the economic shock of the coronavirus. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan praised Chairman Rubio and co-sponsor Senator Susan Collins (R-Maine) for thinking big and strategically about delivering small businesses the capital they need through effective, efficient and proven channels while expanding the level of support that is necessary to save millions of locally-owned businesses.

“The package outlined by Chairman Rubio and Senator Collins is certainly big and bold, which is appropriate given the unprecedented challenge at hand. The legislation would deliver capital to small businesses through proven channels and programs, and offer the needed level of government support that is called for during this extraordinary national crisis.

“Small businesses need capital, period. Using and making appropriate modifications to SBA’s 7a loan program, with terms and provisions that are sensitive to the deteriorating financial state of many small businesses, will save countless jobs. Main Street businesses are doing all they can to adapt, and change up their business models in order to hold onto their hard-working employees. But plunging revenues across industries have rapidly taken a massive toll on the engine of the American economy. Small businesses need a capital infusion – and right now – to get them through the other side of the coronavirus economy. Chairman Rubio’s bill is a critical solution to help do just that,” said Kerrigan.

Using the SBA’s 7(a) loan platform and partnerships with community banks and financial institutions, language being worked upon currently would infuse a $300 billion boost of capital that is 100 percent guaranteed. Chairman Rubio and Senator Collins emphasized loan forgiveness for payroll from March 1-June 30, 2020. Other pieces of the package being worked upon include the deferral of payments for up to one year, and zero loan fees. At the press event, Chairman Rubio said final text of the legislation is imminent and that the effort is fully bipartisan.

“Getting capital into the hands of small businesses as rapidly as possible is the key to saving jobs and businesses during this unexpected economic shock and crises. The SBA 7(a) loan program can scale quickly through existing financial institution partners and community banks. SBE Council is urging Congress to move at unprecedented speed to deliver capital and support to small businesses. Every hour of every day during this crisis matters to struggling small businesses across America,” added Kerrigan.

Related Content:

Coronavirus Response for Main Street: Letter to President Trump and

Congressional Leaders, March 18, 2020. Leading business groups, including SBE Council, delivered this letter urging action in several critical areas.

Protecting Your Business in the Coronavirus EconomySmall Business Insider: Tips, Private Sector Resources, Government Guidance and More (Updated Daily), by Karen Kerrigan, March 2020.

Contact:  

Karen Kerrigan, SBE Council president & CEO
e-mail: kkerrigan@sbecouncil.org 

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org @SBECouncil

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