Senator Doug Jones Proposes Bipartisan Loan Forgiveness Legislation for Disaster-Hit Small Businesses
Statement
Alabama businesses in declared disaster zone for Hurricane Sally could have CARES Act loans forgiven
WASHINGTON, D.C. -- Today, U.S Senate Doug Jones of Alabama and Senator John Kennedy (R-La.) introduced the Disaster Relief for Southeastern Small Businesses Act of 2020. This bill would forgive small business loans made under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Disaster Relief for Southeastern Small Businesses Act establishes an easy process for businesses in counties with major disaster declarations from Hurricane Sally to seek forgiveness for Paycheck Protection Program loans and Economic Injury Disaster Loans (EIDL).
"As folks across South Alabama begin the work to recover and rebuild after Hurricane Sally, I believe Congress should be assisting them in any way we can," said Senator Jones. "That's why I'm joining Senator Kennedy, from our neighbor Louisiana, to introduce bipartisan legislation that ensures small businesses impacted by Hurricanes Sally and Laura can benefit from loan forgiveness for COVID-19 relief programs. Alabama's Main Street businesses have struggled already during the pandemic, and Hurricane Sally is yet another devastating hit. This legislation will cut through government red tape and allow forgiveness of business loans received as part of our CARES legislation as they continue to re-open and re-build. It is one way we can help them survive these compounding disasters and continue to serve our communities and create jobs."
Impacted businesses must provide their lenders with an attestation form stating that the business used the loans as intended in order to receive loan forgiveness. In order to prevent fraud and ensure transparency, the Small Business Administration (SBA) Administrator would have the authority to review and audit forgiven loans.
The Paycheck Protection Program (PPP) closed at the end of August 8, 2020. As a result, the SBA is no longer accepting applications from participating lenders. Alabama businesses received 70,331 PPP loans totaling $6.245 billion. As of August 8, 2020, a total of 41,243 EIDL loans totaling $1.84 billion have been issued by the SBA to small businesses in Alabama.
BACKGROUND
From his seat on the Senate Banking Committee, Senator Jones has been a strong advocate for Alabama's small businesses before and throughout the COVID-19 pandemic. In May, he called for increased guidance and loan forgiveness for small businesses who have applied under the PPP and supported legislation to replenish PPP funds and ensure additional relief would be available to Alabama's small businesses. He also introduced legislation to fund the payrolls of eligible businesses -- called the Paycheck Security Act -- to keep businesses afloat and workers paid during the pandemic.
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