March 15, 2022
** Last week, Shaheen & Hassan sent a letter to SBA Administrator Guzman requesting an extension of the EIDL repayment period to acknowledge the financial fallout and uncertainty facing small businesses **
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) today applauded the U.S. Small Business Administration’s decision to extend the loan repayment deferral period by six months. in the event of an economic disaster (EIDL). This follows a push by senators last week to SBA Administrator Isabel Guzman to allow small businesses in New Hampshire and across the country more time to repay these loans given the economic consequences. lingering effects of the pandemic facing the small business community.
“I am thrilled that the Small Business Administration has answered my calls to help small businesses in New Hampshire and across the country by giving them more time to repay loans in the event of an economic disaster,” 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. Although we are seeing strong signs of economic recovery, we are still unclear – struggling businesses are taking longer 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 business community as we strive to put 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 pay back their loans in the event of an economic disaster”, said Hasan. “I’m thrilled the Small Business Administration has heeded our call and extended the deferment period. During 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.”
EIDL SBAs are low interest loans available to qualifying small businesses. EIDLs provide eligible small businesses with a loan of up to $2 million, with a repayment term of up to 30 years. Loans can be used to pay for expenses that could have been covered had the disaster not occurred, including salaries and other operating expenses. COVID-19 related EIDLs have an interest rate of 3.75% for businesses and 2.75% for nonprofits and initially had an automatic one-year deferral on repayment, but the March 16, 2021, the SBA announced that it would extend the deferral period for a second year.
Shaheen has 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 that was signed into law in 2020 to help small businesses, which established the Paycheck Protection Program and expanded the program. economic disaster loans. More than 41,000 New Hampshire small businesses and nonprofits have received more than $3.7 billion in PPP assistance. As part of the COVID-19 relief enacted in December 2020, it helped secure $20 billion for the Emergency Economic Disaster Lending (EIDL) grant program and $3.5 billion to extend the debt relief program established under the CARES Actwhich covers the payment of principal, interest, and fees on all preexisting and new loans guaranteed by the Small Business Administration (SBA).
Hassan works across the aisle to ensure small businesses have the support they need, and recently led his colleagues to introduce the bipartisan Employee Retention Tax Credit Restoration Act to restore essential tax relief for businesses in New Hampshire and across the country. Her too worked successfully with Senator Richard Burr (R-NC) to include bipartisan legislation in the funding bill passed in 2020 to allow eligible small employers to participate in the Paycheck Protection Program and claim the Employee Retention Tax Credit. Additionally, through the efforts of Senator Hassan, the US bailout provided payroll assistance through the Employee Retention Tax Credit to new small businesses created during the pandemic, which at the time did not could not access this tax relief. The US bailout also expanded the employee retention tax credit to further support hard-hit businesses by the pandemic following bipartisan calls led by Senator Hassan.