Photo Caption: Hispanic Chamber Leaders at 2019 USHCC Legislative Summit Hill Day
U.S. Senate Passes $2 Trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act
Dear USHCC Leaders and Small Business Owners,

Our Board of Directors remains focused on helping connect you with financial assistance and economic relief as a result of COVID-19 (coronavirus).

Last night in a 96-0 vote, the U.S. Senate reached a bipartisan compromise on a $2 trillion economic stimulus package to address the economic impact caused by COVID-19 titled the Coronavirus Aid, Relief, and Economic Security (CARES) Act .

The bill is scheduled for a vote tomorrow in the U.S. House of Representatives, and is expected to be signed by the President into law shortly after.

We are sharing for you an executive summary of the bill as it stands right now.

The USHCC will continue to be your small business voice in Washington, D.C.

We hope each of you and your families stay safe during these unprecedented times.

Ramiro A. Cavazos
President & CEO
United States Hispanic Chamber of Commerce
$377 Billion Small Business Rescue Plan

  • $350 billion in loan forgiveness grants to small businesses to keep their existing workforce and pay for rent, mortgage, utilities, among other expenses. This program will be available for small businesses through their local bankers or lenders, and will be 100% federally guaranteed without collateral requirements.

  • $10 billion in emergency grants to provide immediate relief for small business liquidity needs.

  • $10 million for the Minority Business Development Agency (MBDA) to provide grants to Hispanic/Minority Chambers of Commerce and Minority Business Centers to provide counseling, training, and education on federal resources and business response to COVID-19.

  • Eliminates the Minority Business Center program's non-federal match requirement for a period of three months and allows for centers to waive fee-for-service requirements through September 2021.

Debt Relief for Existing and
New SBA Borrowers

  • $17 billion to provide immediate relief to small businesses with standard SBA 7(a), 504, or microloans. SBA will cover all loan payments for existing SBA borrowers, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out an SBA loan within six months after the President signs the bill. The measure also encourages banks to provide further relief to small business borrowers by allowing them to extend the duration of existing loans beyond existing limits; and enables small business lenders to assist more new and existing borrowers by providing a temporary extension on certain reporting requirements.

  • While SBA borrowers are receiving the six months debt relief, they may apply for a Paycheck Protection Program (PPP) loan that provides capital to keep their employees on the job. The six months of SBA payment relief may not be applied to payments on PPP loans. The stimulus also includes a permanent fix that allows SBA to waive fees for veterans and their spouses in the 7(a) Express Loan Program, regardless of the President’s budget. Under current law, SBA may only waive fees on 7(a) Express loans to veterans when the President’s budget does not project a cost above zero for the overall 7(a) loan program. 

Emergency Economic Injury Grants

  • $10 billion in funding to provide an advance of $10,000 to small businesses and some nonprofits that apply for an SBA Economic Injury Disaster Loan (EIDL) within three days of applying for the loan. EIDLs are loans of up to $2 million that carry interest rates up to 3.75 percent for companies and up to 2.75 percent for nonprofits, as well as principal and interest deferment for up to 4 years. The loans may be used to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.

  • The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL, and may be used to provide paid sick leave to employees, maintaining payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The grant is available to small businesses, private nonprofits, sole proprietors and independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses.

  • A business that receives an EIDL between January 31, 2020 and June 30, 2020 as a result of a COVID-19 disaster declaration is eligible to apply for a Paycheck Protection Program (PPP) loan or the business may refinance their EIDL into a PPP loan. In either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the PPP. The bill provides $562 million to ensure that SBA has the resources to provide Economic Injury Disaster Loans (EIDL) to businesses that need financial support. 

Resources for Business Counseling Services
  • This legislation provides $275 million in grants to the nation’s network of Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs), as well as the Minority Business Development Agency’s Business Centers (MBDCs), to provide mentorship, guidance and expertise to small businesses. The funding will allow SBDCs, WBCs, and MBDCs to hire staff and provide programming to help small businesses and minority-owned businesses respond to COVID-19.

  • The bill also provides funds for the associations that represent SBDCs and WBCs to create a joint platform that consolidates information and resources related to COVID-19 in order to provide consistent, timely information to small businesses. The SCORE mentoring program and Veterans Business Outreach Center program are encouraged to use the platform and participate in the COVID-19 education sessions for their volunteer mentors and small business counselors.

Paid Leave for Government Contractors

  • This legislation includes a provision that provides paid leave for employees working on small business contracts with the federal government. The measure allows agencies to modify the terms of a contract to reimburse small business contractors for the cost of providing paid leave, including sick leave, to employees or subcontractors unable to perform work on-site due to a facility closure or for those who do not have the adequate capabilities to perform telework. 
Frequently Asked Questions

How do I apply for a small business emergency relief loan?

Contact your bank or lender and ask about applying for a 7(a) small business loan. The CARES act will distribute emergency relief loans through the Small Business Administration 7(a) lending program. The U.S. Treasury will also be issuing new regulations making it easier for almost every FDIC-insured bank to make these loans. If your bank or lender does not offer 7(a) small business loans, there are more options available.

How long will it take to receive economic relief?

In a press conference yesterday, the U.S. Treasury Secretary Steve Mnuchin announced he expects that "by the end of next week, we will have a very simple process where these [loans] can be made and disbursed in the same day." ( White House Transcript)

How much money can I get?

Banks and lenders will use a formula to calculate the loan amount, taking into consideration business payroll and other operational expenses. The maximum amount for a loan has been temporarily raised from $5 million to $10 million. The loans are expected to cover eight weeks of employee salaries and other operational expenses.

Will I have to pay the loan back?

The bill as it currently stands provides for loan forgiveness to businesses that keep and continue paying their employees.

When will the economic relief bill become law?

The CARES Act was approved by the U.S. Senate last night and is scheduled for a vote in the U.S. House of Representatives on Friday. The President is expected to sign the bill into law immediately after.
More Resources

If you would like to join the United States Hispanic Chamber of Commerce or have questions, please contact C. LeRoy Cavazos-Reyna , Vice President of Government and International Affairs at .

We are committed to providing guidance, resources, and necessary technical assistance to get Hispanic Minority-owned small businesses the adequate help they need during these unprecedented times in our country.  
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