Sens. Jon Tester and Steve Daines are backing bipartisan laws that will guarantee small companies obtain mortgage forgiveness for emergency grants offered earlier this 12 months to offset the impacts of the pandemic on small companies.
The laws would be certain that those that obtained an “advance grant” beneath the Emergency Damage Catastrophe Mortgage program aren’t punished when calculating their Paycheck Safety Program forgiveness.
Tester mentioned some small companies nonetheless face sudden mortgage balances beneath the PPP effort. Because it stands, a enterprise that obtained an advance grant and a PPP mortgage will see the grant subtracted from the PPP forgiveness.
“Montana’s small companies and the nice paying jobs they create are the spine of our financial system,” mentioned Tester. “We made a promise to those companies at first of this disaster that their emergency damage catastrophe loans could be forgiven, and we’ve received to maintain our phrase and defend native jobs and economies by making them complete.”
Beneath the Part I COVID-19 legislative bundle signed into regulation in early March, the Small Enterprise Administration issued an Financial Damage Catastrophe Mortgage declaration, making loans out there to small companies and personal, non-profit organizations.
The advance grants have been small advances on these loans and have been meant to be distributed rapidly to assist companies because the pandemic swept throughout the nation.
If authorised, the laws would supply mortgage forgiveness for the advance grants.
“Montana small companies and our local people banks have been drastically impacted by the COVID-19 pandemic. They want aid to assist defend jobs and employees, not pointless loans and funds throughout these arduous occasions,” Daines mentioned.