WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV), a member of the Senate Small Business and Entrepreneurship Committee, released the following statement announcing the launch of the Small Business Administration’s (SBA) Paycheck Protection Program that is part of the coronavirus response legislation she voted for and helped pass, and encouraging Nevada small businesses and non-profits to apply.
“More than 99 percent of businesses in Nevada are small businesses, and during this difficult time, we must take action to ensure that our state’s small businesses and workers are not left behind,” said Senator Rosen. “The Paycheck Protection Program will provide much needed help in the form of federal loans and loan forgiveness incentives to assist businesses to keep their employees on payroll during the coronavirus pandemic. As we work to overcome this health crisis, I will continue fighting for the economic health of our small business community.”
BACKGROUND: The Paycheck Protection Program, which will be available until June 30th, 2020, is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive eight weeks of the loan if all employees are kept on the payroll and the money is used for payroll, rent, mortgage interest, or utilities. This program is available to virtually any small business with 500 or fewer employees (including sole proprietorships, independent contractors and self-employed persons), 501(c)(3) non-profit organizations, or 501(c)(19) veterans organizations affected by the coronavirus pandemic.
Small businesses that are experiencing difficulties navigating federal assistance can send their inquiries and questions to SmallBusiness@Rosen.Senate.gov, and a team of dedicated professionals will respond to provide assistance.
Senator Rosen’s office is working around the clock to ensure Nevadans stay up to date on the latest news regarding the coronavirus, as well as provide a list of resources to assist Nevadans.
During the COVID-19 pandemic, Senator Rosen has:
• Released a Small Business Resource Guide, which can be found here.
• Launched an online resource portal to assist small businesses in Nevada affected by the COVID-19 pandemic.
• Voted for the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020. The $2.2 trillion spending package contains:
o $10 billion for SBA emergency grants of up to $10,000 to small businesses in order to provide immediate relief for their operating costs.
o $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans, a provision from the Rosen-backed COVID-19 RELIEF for Small Businesses Act of 2020
o $349 billion for the new Paycheck Protection Program, which will provide low-interest loans to small businesses and nonprofits to maintain their existing workforce and help pay for other expenses like rent, mortgage, and utilities.
• Worked closely with the Governor’s office and the Small Business Administration (SBA) to ensure that Nevada received approval for the SBA Economic Injury Disaster Loans (EIDL). This led to Nevada becoming one of the first states to be approved for EIDL loans.
o EIDLs provide up to $2 million in assistance for a small business and private, non-profit organization.
o SBA EIDLs can be used to cover payroll, purchase inventory, pay debt, or other expenses if a business has no access to credit elsewhere.
• Helped introduce the COVID-19 RELIEF for Small Businesses Act of 2020. This bill would:
o Improve and leverage the tools available at the Small Business Administration. Provisions that provide emergency grants to small businesses and forgive exiting SBA loans were included in the CARE Act.
o Waive the disaster declaration requirements so that businesses in all states have immediate access to Economic Injury Disaster Loans. A similar provision was included in the CARES Act that authorizes the SBA Administrator to deem states eligible to apply for EIDL loans, which would be triggered by the President declaring a national emergency and invoking the Stafford Act.
• Voted for the bipartisan Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020, which was signed into law on March 6, 2020. In addition to several billion dollars in direct public health support to combat the pandemic, the $8.3 billion supplemental contains:
o $1 billion in small business loan subsidies that would support $7 billion in low-interest loans for small businesses impacted by the coronavirus.
In addition to support for small businesses, the recently-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act also includes the following key provisions:
Support for Workers
• Four months of enhanced unemployment insurance, including pandemic unemployment assistance for individuals who are unable to work due to the public health emergency.
• Provides an additional 13 weeks of unemployment compensation for individuals who have exhausted their state unemployment benefits.
o Covers ALL workers, including self-employed workers, gig workers, independent contractors, part-time workers, and individuals with limited work histories.
o Provides an additional $600 in Federal Pandemic Unemployment Compensation to every weekly unemployment benefit until July 31, 2020.
o Gives state unemployment agencies flexibility to staff up quickly.
Support for Nevada Travel & Tourism and Other Key Industries
• Temporary retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis if experiencing economic hardship due to COVID-19.
• $10 billion in grants to help airports.
• $100 million to TSA for enhanced sanitation at airport security checkpoints, overtime and travel costs, and the purchase of explosives trace detection swabs.
• More than $6.5 billion in funding for CDBG, the Economic Development Administration, and the Manufacturing Extension Partnership to help mitigate the local economic crisis and rebuild impacted industries such as tourism or manufacturing supply chains.
• $500 billion to Treasury’s Exchange Stabilization Fund to provide loans, loan guarantees, and other investments to industry.