WASHINGTON, DC – The SBA has already named New Jersey as a "declared disaster state." While this opens the door for businesses to receive disaster relief funding, Congressman Andy Kim (NJ-03) wants to take it a step further. Today, Kim introduced the Microloan Emergency Assistance Act, H.R. 6291, a bill that would strengthen the Small Business Association’s (SBA) Microloan program to help small businesses impacted by the ongoing Coronavirus pandemic and the accompanying economic crisis.
“In times of crisis, our small businesses are always the first to feel the pain, and the last to recover. It’s why we need to take action now to support our entrepreneurs impacted by the Coronavirus pandemic,” said Congressman Kim. “I know that this bill won’t be enough; I’ll keep working to listen to our small business owners and work with them to ensure they have the support they need to get through this period and be ready to come back strong.”
The bill would strengthen the SBA’s Microloan Program, which was created by Congress in 1991 to make funds available to community-based lenders, who in turn make loans to eligible borrowers. Many of these borrowers are underserved entrepreneurs who may not have a credit history or significant business experience, and thus may be more vulnerable to the current economic crisis.
The bill specifically:
- Gives intermediaries the ability to go up to $10 million in the aggregate (up from $6 million, currently).
- Authorizes $80 million in technical assistance grants.
- Extends repayment terms.
- Provides subsidy to authorize $110 million in direct loans.
Information about Congressman Kim’s actions to contain the Coronavirus pandemic and address the ongoing economic impact can be found on his website by clicking here.
Congressman Kim is a member of the House Armed Services Committee and the House Committee on Small Business. More information about Congressman Kim can be found on his website by clicking here.