Updated: Apr 22, 2020
3/23/20: Washington fails to reach consensus; SBE’s have reason to be confident that loans will be available
There had been hope that Washington would reach consensus on the framework for major economic stimulus over the weekend. While that was not the case, we do ultimately expect substantial relief to SBE’s to be included in the plan.
Our view: there is wide/bipartisan consensus of the need for a major economic stimulus to support the economy and that the total near-term infusion will be between $1 and $2 trillion; party leaders are working to resolve different views on aspects of the legislation.
What appears to be a less controversial aspect of the stimulus is funding for interest free, forgivable small business loans. The Washington Post reports the following:
Sen. Marco Rubio (R-Fla.), who chairs the Senate Small Business Committee, said there is a “very strong general agreement” that small businesses will be able to obtain loans up to 250 percent of their one-month payroll. That money, as long as it is used for businesses expenses such as paying workers or providing their benefits, or to cover rent, will be entirely forgiven, Rubio said.
We are watching these negotiations carefully.