On March 19th, Florida Senator Marco Rubio tweeted out the possible components of a economic recovery program being crafted by federal officials to help businesses impacted by the COVID-19 virus.
The key components include forgiveable loans, a process handled by banks in the community, to be inclusive when defining “small business” and to move as quick as possible.
The information, copied from Senator Rubio’s twitter account, is provided below.
- What we are discussing are FORGIVEABLE Loans. Whatever they take out from this assistance program & use for payroll & business and rent/lease/mortgage will NOT have to be repaid. Limit on what they get will be some multiple of their payroll/expenses before the crisis hit.
- This is NOT some traditional SBA direct loan or program. We are using many of the guidelines & infrastructure of the 7(a) program but they will NOT be calling a government agency for this help. It will be handled by a bank,credit union or other lender in their community.
- Existing 7(a) lenders ready to go right away. But everyone agrees that the list lenders involved needs to be expanded rapidly & we create a process to do that. The ideal outcome is for small businesses to be able to do all this with their own bank if they want
- The criteria for what qualifies as a small business is still being worked out. BUT, lots of agreement that it needs to be more inclusive than current definition. The goal is to reach the largest % of Americans workers as possible. And I feel confident we can achieve this.
- This will NOT exclude any industry. It WILL apply to s corp, C Corp, non-profits, partnerships, sole practitioners, etc. who meet the expanded criteria for small business. Again the goal is to be inclusive not exclusive.
- Worked all night trying to finalize so bear with us on all details until finalized. But goal is straightforward: Get cash to small business are fast & easy as possible so they don’t have to lay people off & if they use it for that purpose doesn’t have to be paid back .