Velazquez introduces small biz COVID relief bill

      On March 19, Rep. Nydia Velazquez, D-NY, chair of the House Small Business Committee, released an ambitious COVID-19 emergency relief bill for small businesses hurt by the pandemic and economic fallout.

      The bill includes provisions specifically aimed to assist small business federal contractors, set up new temporary SBA loan programs and provide funding to other SBA programs.

      Velazquez reportedly is negotiating with Senate leaders to include some of the items in the massive $1.8 trillion economic relief package. The package was still under discussion at presstime. Small federal contractors

      Velazquez’ bill contains these measures to assist small business federal vendors, according to a news release:

• Extend contract performance time by 90 days to small businesses affected by COVID-19;
• Require the government to pay small business contractors and revise the delivery schedules, holding small contractors harmless for being unable to perform under a contract because of COVID-19;
• Temporarily remove the requirement for contracting officers to conduct market research so that contracting officers may grant sole-source award contracts for small business programs, including the women-owned, HUBZone and service-disabled veteran-owned small business programs;
• Increase total sole-source award contract values to $8 million for services and $10 million for manufacturing;
• Require federal agencies promptly pay small business prime contractors and contractors with small business subcontractors within 15 days; and
• Provide 8(a) firms with a one-year extension of their eligibility. Loan programs

      If approved by Congress, the bill also would create a temporary direct loan program at SBA and a temporary guaranteed loan program at SBA for small businesses in the states and territories with a confirmed or presumed positive COVID-19 case. The programs together would support $200 billion worth of zero interest, zero-fee loans of up to $2.5 million with 10-year terms and repayment deferred for a year. The SBA would forgive up to 50% of the loan if the borrower has retained the same number of employees;

      It also would allow immediate debt relief for small businesses in industries hard hit by the coronavirus--including hospitality, travel and tourism.

      A new program would be set up at SBA to provide grants of up to $100,000 each for providing sick leave, making payroll, or other needs due to the coronavirus outbreak.

      Fees would be waived for SBA’s 7(a) and 504 loans, for borrowers and lenders, for up to 18 months, The annual lending limits for 7(a) and 504 loans would be raised to $75 billion, from $30 billion, and the maximum loan amounts would be doubled to $10 million, from $5 million. SBA funding

      There are a number of direct spending allocations for SBA entrepreneurial development and other programs within Velazquez’ bill.

      The bill provides $200 million for additional SBA staff to deal with the COVID-19 emergency, along with $75 million in supplementary funds for Small Business Development Centers, $25 million more for Women’s Business Centers; $25 million more for SCORE; and $25 million for SBA technology to improve delivery of services remotely for those programs.

More Information:
Velazquez bill summary: https://bit.ly/2UdNOPJ

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Velazquez introduces small biz COVID relief bill

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