March 12, 2022
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) joined U.S. Senator Raphael Warnock (D-GA) and a group of senators to urge the U.S. Administrator to the Small Business Administration, Isabel Guzman, to extend the Economic Disaster Loan (EIDL) repayment deferment period for small businesses in New Hampshire and across the country.
EIDL SBAs are low-interest loans available to qualifying small businesses. EIDLs provide eligible small businesses with a loan of up to $2 million, with a repayment term of up to 30 years. Loans can be used to pay for expenses that could have been covered had the disaster not occurred, including salaries and other operating expenses. COVID-19 related EIDLs have an interest rate of 3.75% for businesses and 2.75% for nonprofits and initially had an automatic one-year deferral on repayment, but the March 16, 2021, the SBA announced that it would extend the deferral period for a second year.
“While there are many encouraging signs that the economy is improving, most small businesses are not yet in a position to benefit from the recovery due to their lower profit margins, tighter inventories, lack of access to capital and their difficulty in competing with large corporate competitors for employees and supplies, especially as we work to address supply chain delays,” writes lawmakers.
“Companies that have turned to the Small Business Administration (SBA) during the pandemic include some of our nation’s most vulnerable businesses. Giving them extra time before they have to repay their loans would not only provide much-needed relief during this time of continued uncertainty, rising costs and supply chain challenges, but would also put them in a much better position. to prosper once the economy is fully restored,” lawmakers sued.
“When Congress funded the COVID EIDL program in 2020, it did so to ensure small businesses would have access to the capital they needed to weather this pandemic and ultimately emerge stronger. After two turbulent years, we know the end is in sight, but small businesses still need help. Congress has given you the power to provide relief, and we ask that you recognize the continuing uncertainty and hardship small businesses face today and use it now,” lawmakers concluded.
You can read the full letter here.
Shaheen has worked to provide small businesses with the resources they need to weather and recover from the economic impact of the COVID-19 pandemic. She helped lead negotiations on provisions of the CARES (Coronavirus Aid, Relief and Economic Security) Act that was signed into law in 2020 to help small businesses, which established the Paycheck Protection Program and expanded the program. economic disaster loans. More than 41,000 New Hampshire small businesses and nonprofits have received more than $3.7 billion in PPP assistance. As part of the COVID-19 relief enacted in December 2020, it helped secure $20 billion for the Emergency Economic Disaster Lending (EIDL) grant program and $3.5 billion to extend the debt relief program established under the CARES Actwhich covers the payment of principal, interest, and fees on all preexisting and new loans guaranteed by the Small Business Administration (SBA).
Hassan works across the aisle to ensure small businesses have the support they need, and recently led his colleagues to introduce the bipartisan Employee Retention Tax Credit Restoration Act to restore essential tax relief for businesses in New Hampshire and across the country. Her too worked successfully with Senator Richard Burr (R-NC) to include bipartisan legislation in the funding bill passed in 2020 to allow eligible small employers to participate in the Paycheck Protection Program and claim the Employee Retention Tax Credit. Additionally, through the efforts of Senator Hassan, the US bailout provided payroll assistance through the Employee Retention Tax Credit to new small businesses created during the pandemic, which at the time did not could not access this tax relief. The US bailout also expanded the employee retention tax credit to further support hard-hit businesses by the pandemic following bipartisan calls led by Senator Hassan.