Loeffler, Colleagues Ask for Administrative Fix to Program Used for PPP Loans

Urge Fix to Ensure Continued Relief for Small Businesses

ATLANTA, GA – U.S. Senator Kelly Loeffler (R-Ga.) joined a bipartisan group of Senators in urging the U.S. Department of the Treasury and the Small Business Administration (SBA) to provide an immediate administrative fix to ensure the continued operation of the 7(a) loan program, which is utilized for SBA loans available for small businesses impacted by COVID-19.
 
Due to a technical drafting error, the CARES Act and the Paycheck Protection Program and Health Care Enhancement Act did not create separate authorization levels for the 7(a) program and the Paycheck Protection Program. As a result, the 7(a) program’s FY 2020 $30 billion lending authority will be voided until July 1, 2020 once the amount authorized for PPP is committed. That will leave numerous businesses seeking access to capital without access to the 7(a) loan program.
 
“The 7(a) program provides flexible capital to businesses that cannot obtain credit elsewhere, serving as a lifeline for many small businesses before this crisis, and fulfilling a vital role in this economic emergency,” the Senators wrote. “The high demand for PPP loans will lead to a swift expenditure of the new funds, given the severity of the crisis and need for small business relief. We urge the agencies to provide an immediate administrative fix to reserve part of the authorized amount for the 7(a) program.”
 
The full text of the letter can be found here.
 
The letter, which was led by Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-Fla.) and Ranking Member Ben Cardin (D-Md.), was also signed by Lamar Alexander (R-Tenn.), Marsha Blackburn (R-Tenn.), Cory Booker (D-N.J.), John Boozman (R-Ark.), Maria Cantwell (D-Wash.) Chris Coons (D-Del.), Tammy Duckworth (D-Ill.), Michael Enzi (R-Wyo.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Mazie Hirono (D-Hawaii), Jim Inhofe (R-Okla.), Ed Markey (D-Mass.), Jim Risch (R-Idaho), Mitt Romney (R-Utah), Jacky Rosen (D-Nev.), Mike Rounds (R-S.D.),  Jeanne Shaheen (D-N.H.) and Todd Young (R-Ind.).