WASHINGTON-U.S. Senators Mitt Romney (R-UT), Jon Tester (D-MT), and Angus King (I-ME) today introduced legislation which would enhance support for rural communities, family farms, and small businesses during the COVID-19 outbreak. The Rural Equal Aid Act would provide relief to rural small businesses by expanding assistance Congress previously provided for certain existing Small Business Administration (SBA) loans to Rural Development (RD) program loans within the United States Department of Agriculture (USDA).
“Small businesses and community organizations are vital to the health and livelihoods of Utah’s rural communities, and they have faced great hardship over the last several months,” Senator Romney said. “Our legislation will help them receive the support they need to keep their doors open and get through this pandemic.”
“Small businesses across Montana are hurting, and they need all the support they can get to weather this storm,” Senator Tester said. “This bipartisan legislation will help small businesses and family farms keep the lights on by providing critical resources to communities hit hardest by the pandemic, and make sure folks in rural Montana don’t get left behind during this public health crisis.”
“When Congress passed the CARES Act, we included provisions to reduce loan burdens for small businesses across the country,” Senator King said. “This was the right move, but by excluding USDA Rural Development loans from the program, the effort left out many rural businesses that are feeling the same pain. Now, as Congress considers the next coronavirus relief package, we should extend these protections to ensure that our rural communities can access the same type of support as the rest of the country.”
The CARES Act requires the SBA to pay the principal, interest, and any associated fees owed on these covered loans for a six month period, and the Senators’ bill would require USDA to do the same for certain RD program loans. These loans go through small community financial institutions and support local governments, Tribes, educational institutions, and small businesses to grow local economies with local dollars. Providing these small businesses and community organizations with the same support given to SBA borrowers is critical to ensuring their survival going forward, and the health of rural communities.