Obama’s small business chief says Democrats should act on loan funds now
“Complexity is not our friend here,” she said. “Things that need to be implemented quickly cannot have a lot of bells and whistles or there will be too many unintended consequences, including delay. And we don’t have time to delay.
Mills said there’s an easier way to make sure smaller businesses get help: Congress should cap loans of $ 100 billion from guarantee funds, limiting them to loans below one. certain maximum, like $ 45,000. According to SBA data released on Tuesday, the the average PPP loan was $ 239,000.
Leach of Beneficial State Bank said he would also like to see other adjustments, such as increasing the loan limit from 10 weeks pay to six months or one year. The amount that can be forgiven should also be increased by eight weeks to cover the length of the stay-at-home orders in force, Leach said.
And loan terms should also be increased from two years to the legal limit of 10 years or more, he said, so that if companies have to pay them back, they don’t have to pay off a big debt in just two. years. while the economy is struggling to recover.
But the adjustments aren’t as big as getting more money out now, Leach said. Already, small businesses are starting to file for bankruptcy as quarantine measures have kept a third of the economy shut.