|Posted:||May 7, 2020 08:35 AM|
|From:||Representative Jake Wheatley, Jr.|
|To:||All House members|
|Subject:||COVID-19 Small Business Relief Package|
|As we have learned, $350 billion gets claimed quickly, especially when allowing affluent, privately traded companies to compete with less sophisticated and financially challenged small businesses. This is why I am introducing a comprehensive small business relief package.
My bill will target three categories of businesses with up to $10 billion in loans. These loans will be distributed through DCED and Community Banks. The loans may be used for payroll, working capital, debt servicing or a combination thereof. If a business chooses to use the money for payroll then they are prohibited from laying off employees directly after. Three categories of businesses will be earmarked to receive the following amounts including varying amounts determined by the number of employees;
In order to avoid the problems experienced at the federal level, none of these loans will be made available to a business that already received PPP dollars or is a publicly traded company. We are trying to identify and provide assistance to truly small and local businesses most in need during COVID-19. They were left out of previous assistance and we cannot allow that to happen again.
Payments for the loans granted under my legislation will be deferred for the first six months. At the end of this forgiveness period, businesses will be required to make 24 on-time payments. After meeting the payment requirements on time, all remaining principle and interest will be converted into a grant.
Many Pennsylvania businesses were unable to obtain funding through the federal program and we must step up to the plate and help these struggling businesses. We are not in a position to wait for the Federal government a second time, nor should we allow them to determine who is most in need when we are talking to our constituents and business in or districts every day.
I respectfully request your support of this important and badly needed legislation.