Legislation provides $350 billion in zero-interest, zero-fee loans as well as grants to affected small businesses and non-profits
OKLAHOMA CITY, OK – On Monday, Congresswoman Kendra Horn introduced the Too Small To Fail Act, a bill to help small businesses and non-profits with immediate disaster relief grants and zero interest loans. Currently, Small Business Administration (SBA) interest rates for Economic Injury Disaster Loans (EIDL) are set at 3.75% for small businesses and 2.75% for non-profit organizations, with terms up to 30 years. The Too Small To Fail Act would provide $15,000 EIDL grants to impacted businesses and non-profits within three days of their application and would dramatically expand the availability of zero-interest, zero-fee SBA loans.
“Our small businesses and nonprofits are critical engines of economic opportunity and support in our communities,” said Congresswoman Horn. “The situation we are facing is not only a public health emergency, it is also an economic crisis which requires solutions now. I have heard directly from small business owners and non-profit leaders who want to know how to keep their organizations afloat during a growing economic disaster. The Too Small To Fail Act would provide immediate and needed support for our nation’s small businesses and non-profits so they can keep their lights on, pay their bills, and support their workers.”
By late last week, Oklahoma was on track to surpass 10,000 unemployment claims in a single week, the most initial claims in nearly three decades. Treasury Secretary Steven Mnuchin warned last week that the U.S. unemployment rate could spike to 20 percent as a result of the COVID-19 pandemic.
Congresswoman Horn introduced the Too Small To Fail Act along with lead author Rep. Chris Pappas (NH-1) and original co-sponsors Reps. Max Rose (NY-11), Chellie Pingree (ME-1), Andre Carson (IN-7), Susan Wild (PA-07), Debbie Mucarsel-Powell (FL-26), Jimmy Panetta (CA-20), Jahana Hayes (CT-05), Ann McLane Kuster (NH-02), and Eleanor Holmes Norton (DC-AL). Text of the Too Small To Fail Act is available here.