Farm Group President Pleased Ag Included In Economic Injury Disaster Loan Program

Farm Group President Pleased Ag Included In Economic Injury Disaster Loan Program

Farm Group President Pleased Ag Included In Economic Injury Disaster Loan Program

A almost $500 billion measure that would help businesses and hospitals cope with the coronavirus' devastation is edging toward House passage.

The initial rules of the program allowed bigger companies such as restaurants and hotels with under 500 workers per location to apply for the loans.

"It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification", the guidelines said. "The next round of funds must be focused on small businesses, with better oversight and transparency".

According to the most recent data from the United States Chamber of Commerce, there were more than 30 million small businesses operating in the U.S.in 2018.

But advocates for larger banks have expressed concerns that the set-asides for small firms could jam up the process by making the SBA update its electronic system for accepting and processing loans, which crashed soon after the program opened.

The SBA's new guidelines require companies to certify with their lender that they need the loan and can not access the money from other sources. "In addition, Congress should clarify implementation to resolve issues with added limits and requirements that are not in accord with legislative intent".

The measure would also provide hospitals with $75 billion more and implement a nationwide virus testing program to facilitate reopening the economy.

That 2.2 trillion-dollar measure included about 350 billion dollars for a loan program for small businesses that have been forced to shut down. "Knowing that, we quickly made the decision to return the loan". "Until every restaurant that needs it has had the same opportunity to receive assistance, we're returning ours".

The primary goal of the $484 billion bill, which is expected to pass the House on Thursday, is to replenish the Paycheck Protection Program (PPP), an initiative that offers loans to businesses that can be forgiven if the money is used to keep employees in payrolls.

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