Congresswoman Angie Craig Introduces Bill Providing No Interest Loans for Small Businesses

Statement

Today, U.S. Rep. Angie Craig introduced a bill that would provide interest free loans to small businesses dealing with the impacts of the coronavirus.

The loans, offered by local SBA approved banks and other lenders, would be for up to $2.5 million, and be eligible for 50% forgiveness if a business has the same number of employees it had on December 31, 2019, through the end of next year. Businesses could use these loans to cover loan payments, payments for benefits to employees, wages for employees, rent and utilities, as well as to refinance existing debt and provide necessary items to respond to a health emergency. If this becomes law, businesses would have 10 years to repay with a 12 month deferral.

"I've talked to dozens of small business owners over the past four days. Our small businesses are stepping up to help their communities in every way possible, but the impacts of the coronavirus are going to be tremendous if we don't help quickly," said Rep. Angie Craig, who will encourage House leadership to include the bill in an upcoming stimulus package. "These no interest loans will help our small businesses get through this, and their loans will be partially forgiven if they keep their hard-working employees. This is something we should all be able to agree on and I look forward to seeing it swiftly become law."

Rep. Craig is a member of the House Committee on Small Business. She pushed and helped secure small business loans that are currently available to small businesses and nonprofits in Minnesota, and she continues to push to make this funding affordable by fighting to lower interest rates on these loans.

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