The Coronavirus Aid, Recovery, and Economic Security (CARES) Act provides $377 billion in small business loans. This will allow a small business to go to any federally insured financial institution to access those loans—many of which will be forgiven if used to support keeping employees on payroll, another important provision to help keep folks employed.
On April 24th, 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act into law, which provided an additional $321 billion to the Paycheck Protection Program, setting $60 billion aside for our nation's smallest lenders.
Small Business Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Find answers to Frequently Asked Questions on the Paycheck Protection Program here.
Coronavirus Small Business Administration Guidance & Loan Resources
Prioritizing COVID-19 Response at the Financial Services Committee
Republican Legislative Action
The Crowdfunding to Combat the Coronavirus Act
Introduced by Ranking Republican Patrick McHenry (NC-10), this bill creates a $1 billion prize for creating a COVID-19 vaccine that must be affordable and widely available. Additionally, it eliminates offering ceilings in Regulation Crowdfunding, Reg. A, and Reg. A+ for startups and small businesses working to combat COVID-19, providing support for job creators while encouraging medical innovation that could save lives.
The Relief for Small Businesses Through Micro-Offerings Act
Introduced by Ranking Republican Patrick McHenry (NC-10), this bill would create a new micro-offerings exemption to allow broader access to capital for entrepreneurs and small businesses. This provides necessary support to concerned job creators whose workforce or product may be negatively impacted by COVID-19 and any shortage in traditional bank lending. Micro-lending has a demonstrated track record for providing much-needed capital to entrepreneurs—often women and minorities—in underbanked communities, helping them start and grow their businesses.
The Coronavirus Accounting Relief Act
Introduced by the Ranking Republican of the Subcommittee on Consumer Protection and Financial Institutions, Blaine Luetkemeyer (MO-3), this bill would delay the implementation of an ill-advised accounting standard, the Current Expected Credit Losses (CECL), that forces institutions to increase credit losses and decrease lending at the most inopportune time. Delaying the implementation of CECL will free up billions of dollars for financial institutions to lend to small business and consumers in need.
