The U.S Senate has unanimously passed the Small Business Lending Continuity Act of 2020. The bipartisan legislation, led by Idaho Repbulican Jim Risch and Illinois Democrat Tammy Duckworth, will make a technical correction to the CARES Act and prevent the Small Business Administration’s flagship Loan Guarantee Program from shutting down when the Paycheck Protection Program reaches its authorization cap of $310 billion.
The SBA program provides small businesses with capital to start or grow a business and is widely used among Idahoans.
In addition to the popular Paycheck Protection Program, the CARES Act also authorized a $17 billion small business debt relief program, directing the SBA to cover loan payments for six months to all small business borrowers of SBA-backed loans and for borrowers that take out SBA-backed loans within six months of the CARES Act passage.
Senators warned if the SBA loan program were to shut down — which the Small Business Lending Continuity Act would prevent — small businesses seeking the loans would be unable to access them and wouldn’t be eligible for six months of SBA covering their loan payments. (Office of Idaho Senator Jim Risch)