The U.S. Small Business Administration said that new SBA borrowers between now and the end of September will get three months of payment relief--up to $9,000 per month--instead of six months. The move is due to budgetary constraints, according to the SBA announcement. The Coronavirus Aid, Relief and Economic Security Act allocated $3.5 billion for these payments, which the SBA believes will not cover six months of payments.
Limiting growth incentives is not sound economic policy, and in the next federal stimulus bill, Congress should add funds to this program. We must create stimulus and incentives for companies to invest, hire, and grow. To put the $3.5 billion budget into context, the second round of the PPP budget is $284 billion and $125.8 billion has been used so far.
The Paycheck Protection Program is helping struggling businesses get over the hump of Covid-19, and this is critical. And also not enough. We must also help emerging and growing businesses expand.
I'm hosting a free panel discussion at 12 p.m. Eastern Time on Friday, with business owners and entrepreneurs who are experiencing rapid growth during the pandemic. They are facing their own unique set of challenges and opportunities. You're invited to join us.