The Roundtable Supports Emergency Small Business Loans, Division A of CARES Act
March 24, 2020
The Real Estate Roundtable applauds the inclusion of the emergency small business loan provisions in Division A of the CARES Act. It is a critical component of COVID-19 response legislation.
Temporary expansion of the Section 7(a) loan program is essential to provide a lifeline to employees, independent contractors, and businesses during the unprecedented economic crisis caused by the pandemic. We strongly agree that Congress should expand the size of eligible 7(a) businesses, expand the allowable uses of SBA loan proceeds, and forgive a portion of these loans for a temporary period of time – as Division A of the CARES Act proposes.
Accordingly, please consider key improvements to Division A as follows:
- For the limited “covered period,” we urge an across-the-board waiver of SBA’s otherwise applicable “affiliation rules.”
- Individual business locations should be eligible for their own emergency SBA loan.
- The amount of the loan should track operating expenses – not just payroll expenses.
The Real Estate Roundtable looks forward to working with you on the small business elements and other critical aspects of COVID-19 response. Together