Debt forgiveness under existing federal emergency funding legislation would be extended to certain small businesses holding disaster loans, according to a new bill introduced this week by U.S. Sen. Thom Tillis (R-NC).
“As hardworking North Carolinians continue to do everything they can to stay in business during this pandemic, Congress must have their backs,” Sen. Tillis said on Tuesday. “This commonsense legislation will expand the eligibility for loan forgiveness for small businesses and give them the flexibility and relief they need as our economy continues to recover.”
The Loan Interest Forgiveness for Taxpayers Under a Pandemic (LIFT UP) Act, S. 4101, cosponsored on June 30 by Sen. Tillis with bill sponsor U.S. Sen. Ted Cruz (R-TX) and fellow cosponsor U.S. Sen. Shelley Moore Capito (R-WV), would expand the eligibility for debt forgiveness provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to small businesses that received Small Business Administration (SBA) disaster loans.
Specifically, S. 4101 would extend the six months of debt forgiveness provided in Section 1112 of the CARES Act to small businesses that received SBA Business Physical Disaster Loans or non-COVID Economic Injury Disaster Loans, according to a bill summary provided by Sen. Tillis’ office.
S. 4101 has been referred to the U.S. Senate Small Business and Entrepreneurship Committee for consideration.