Perry Announces Economic Assistance to Small Businesses Impacted by COVID-19
Harrisburg, March 20, 2020
Tags: Economy and Jobs , Coronavirus Update
Harrisburg – U.S. Representative Scott Perry (PA-10) today announced the availability of low-interest loans through the U.S. Small Business Administration to Pennsylvania’s businesses impacted by the current outbreak of COVID-19.
“We must ensure that American small businesses and individuals affected by the COVID-19 pandemic receive the strong economic support they need. In following federal, state, and local guidance, many of our small businesses have temporarily closed or significantly reduced service. These actions are vital to slow the spread of COVID-19 and save lives, yet they're leaving an immeasurable economic impact on the private sector, and the government must use its full force in responding. I encourage our small businesses to take time to understand the SBA resources that may be available during this crisis,” said Congressman Perry.
The SBA’s Economic Injury Disasters Loans offer a lifeline to small businesses that are economically harmed during a disaster. On March 12, the SBA announced it would begin providing disaster assistance loans due to the outbreak of COVID-19.
The SBA disaster program offers low-interest loans of up to $2 million to small businesses that can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of COVID-19. The interest rate is 3.75% for small businesses without credit available elsewhere and the loans offer long-term repayment terms, up to 30 years, in order to keep payments affordable.
On March 18, Perry joined the entire Pennsylvania Congressional Delegation to support PA Governor Wolf’s request for SBA disaster assistance for our communities. Read the full letter here.
The release of SBA Economic Injury Disaster Loans to Pennsylvania is just the latest assistance provided to small businesses by the Federal Government. On March 6, President Trump signed into law H.R. 6074 that provided $8.3 billion for the COVID-19 response, including $1 billion in loan subsidies to be made available to help small businesses, small agricultural cooperatives, small aquaculture producers, and nonprofit organizations. On Friday, March 13, President Trump declared a national emergency that allowed states, territories, and tribes to access over $42 billion in existing funds to combat COVID-19. Finally, on Wednesday, March 18, the President signed into law H.R. 6201, the Families First Coronavirus Response Act, to provide a refundable payroll tax credit to reimburse, dollar-for-dollar, the amount local businesses will spend for paid sick leave as well as family and medical leave wages. To address concerns about current cash flows, the Treasury Department will use its broad regulatory authority to allow employers to use cash deposited with the IRS or to receive advance funds from the Treasury.
For more information on COVID-19, please visit www.coronavirus.gov.