March 15, 2022
**Last week Shaheen & Hassan sent a letter to SBA Administrator Guzman urging an extension of the EIDL repayment period to acknowledge the financial implications and uncertainties small businesses face**
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) today welcomed the decision by the US Small Business Administration to extend the moratorium on Economic Injury Disaster Loans (EIDL) by six months . This follows a push by senators last week to SBA Administrator Isabel Guzman to give small businesses in New Hampshire and across the country more time to repay those loans amid the ongoing economic impact of the pandemic on small businesses.
“I’m thrilled that the Small Business Administration has heeded my calls to take the pressure off small businesses across New Hampshire and across the country by giving them more time to repay economic damage catastrophe loans.” said Shaheen. “These loans have been a lifeline for small businesses to keep their doors open and weather the financial crisis caused by the pandemic. While we’re seeing strong signs of economic recovery, we’re still not clear – more time is needed for struggling businesses to recoup lost revenue and resume normal operations. I have fought to strengthen the EIDL program through COVID relief negotiations and I will continue to stand up for our small businesses as we work to get this pandemic behind us.”
“This is very welcome news for small businesses in New Hampshire. We may be on the other side of the pandemic, but our economy is still recovering – small businesses need more time before they have to repay their loans for economic damage from disasters.” said Hasan. “I am pleased that the Small Business Administration has heeded our call and extended the deferral period. At a critical time, these loans have provided incredible support to small businesses in New Hampshire, and I look forward to continuing to work directly with small business owners to support their growth.”
SBA EIDLs are low-interest loans available to eligible small businesses. EIDLs provide eligible small businesses with a loan of up to $2 million with a repayment period of up to 30 years. The loans can be used to pay for expenses that could have been met had the disaster not happened, including labor costs and other operating expenses. COVID-19-related EIDLs have an interest rate of 3.75% for businesses and 2.75% for nonprofits and originally had an automatic one-year deferral of repayment, but on March 16, 2021, the SBA announced they were extending the deferral period would be a second year.
Shaheen 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 signed into law in 2020 to support small businesses, which established the Paycheck Protection Program and expanded the Economic Injury Disaster Loan program. More than 41,000 small businesses and non-profit organizations in New Hampshire received over $3.7 billion in PPP support. As part of the COVID-19 relief effort signed into law in December 2020, she helped raise $20 billion for the Economic Injury Disaster Loan (EIDL) emergency grant program and $3.5 billion for the expansion of the CARES Actwhich covers the payment of principal, interest and fees for all existing and new loans supported by the Small Business Administration (SBA).
Hassan, on the other hand, works to ensure small businesses get the support they need and recently led her colleagues in introducing the non-partisan concept Employee Retention Tax Credit Reinstatement Act Reinstating major corporate tax breaks in New Hampshire and across the country. She also successfully worked with Senator Richard Burr (R-NC) to introduce bipartisan legislation into the Funding Act, which went into effect in 2020, to allow eligible small employers to participate in the Paycheck Protection Program and claim the employee retention tax credit. Thanks to the efforts of Senator Hassan, the American Rescue Plan also offered payroll assistance through the Employee Retention Tax Credit to new small businesses started during the pandemic that did not have access to this tax break at the time. The American Rescue Plan also expanded the Employee Retention Tax Credit to further support companies hardest hit by the pandemic, following bipartisan calls led by Senator Hassan.
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