COVID-19 Relief Act.pdf

The COVID-19 RELIEF for Small Businesses Act of 2020 proposes measures to support small businesses, including waiving disaster declaration requirements for Economic Injury Disaster Loans, creating a new grant program for small businesses denied EIDL, providing small business debt relief, and tailoring SBA programs to reduce costs and increase access to capital. The bill also establishes a temporary direct loan program, provides flexibility for small business federal contractors, and supports entrepreneurial development through SBA resource partners. Key provisions include:

Recovery grants of up to $50,000 for small businesses with 2-50 employees and at least 50% losses due to COVID-19
Six months of relief from SBA loan payments, including principal, interest, and fees
Temporary extension of certain reporting requirements for small business lenders
Reduction of fees associated with 7(a) and 504 loans for up to 18 months
Increase of the annual lending limit for the 7(a) loan program from $30 billion to $80 billion for two years
Establishment of a temporary direct loan program with zero-interest, zero-fee loans of up to $2.5 million each
* Forgiveness of up to 50% of the loan after December 31, 2021, if the borrower retains the same number of employees.