Business Loans

The Odds Just Got Better for a Quick SBA Loan Expansion

Mar 12, 2020 • 2 min read
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      Yesterday, President Trump announced his request for the SBA to expand funding with an additional $50 billion in small business loans. Congress still has to approve this request, which will take time, but they just got one step closer.

      The Senate has canceled a planned recess for next week, planning instead to work to pass a response plan for COVID-19. In a statement, Senate Majority Leader Mitch McConnell explained the move. 

      “Notwithstanding the scheduled state work period, the Senate will be in session next week,” he said in a tweet. The Senate is currently waiting on the House of Representatives to come to an agreement on a response plan. 

      “I am glad talks are ongoing between the administration and Speaker Pelosi. I hope Congress can pass bipartisan legislation to continue combating the coronavirus and keep our economy strong,” McConnell explained in his tweet. 

      Before additional SBA funding can be approved, House Republicans and Democrats will have to reach an agreement. According to CNBC, House Speaker Nancy Pelosi has been in close conversation with Treasury Secretary Steve Mnuchin, speaking 4 times over the course of the day. 

      House Democrats had submitted a plan before President Trump’s remarks that didn’t account for many of his surprise announcements—like cuts to payroll taxes and the expansion of SBA loan funding. 

      The negotiations follow Trump’s address to the nation Wednesday night. “I’m asking Congress to increase funding for this program by an additional $50 billion,” he stated. “The SBA will begin providing economic loans in affected states and territories. These low-interest loans will help small businesses overcome temporary economic disruptions caused by the virus.”

      While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.
      About the author
      Mary Kate Miller

      Mary Kate Miller is a writer based in Chicago, IL. She specializes in covering finance (personal and business), investing, and real estate. Her mission in life is to give readers the confidence and the knowledge needed to grow their wealth by making financial topics more accessible. When she's not writing about topics like business loans, you can find her playing armchair financial advisor to the Real Housewives.

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