U.S. SENATE – U.S. Senator Steve Daines today announced plans to introduce bipartisan legislation that will protect Montana jobs and provide critical relief to Montana small businesses, community banks and credit unions.
“Montana small businesses and our local community banks have been drastically impacted by the COVID-19 pandemic. They need relief to help protect jobs and workers, not unnecessary loans and payments during these hard times. That’s why I’ll be introducing bipartisan legislation to ensure small dollar loans are forgiven,” Daines said.
Daines’ legislation will end the requirement that Economic Injury Disaster Loan (EIDL) Advance grants be subtracted from Paycheck Protection Program (PPP) loan forgiveness; ensuring small dollar loans created by this requirement are forgiven.
Daines plans to introduce his legislation with Senator Angus King of Maine.
As part of the CARES Act, Congress created the EIDL Advance program, which allowed businesses to receive a grant of $1,000 per employee, capped at $10,000. However, small businesses who also received PPP loans must subtract the EIDL advance amount they received from their total forgiveness, leaving both small businesses and local community banks and credit unions with small dollar loans and a five-year term.
On October 18th, 2020, Daines sent a letter to leadership of the Senate Committee on Small Business and Entrepreneurship urging them to address the issue between EIDL loans and the PPP forgiveness program.
Daines has been leading the efforts in Congress to respond to the coronavirus outbreak impacting the country. To read about Daines’ COVID-19 related efforts click HERE.