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Small Business Jump-start America Act 

The details of our plan are as follows:

  • The goal of this Act is to build on the PPP loan and Main Street Lending programs.  This Act would identify the immediate essential industries that are needed to jump start the economy July 1, 2020.  These businesses would be small businesses and be essential to manufacturing, key product resellers, key services like ground, air, marine transportation, which are critical to moving people and jump starting our supply chains.
  • This would not be run through the Small Business Administration.  Instead, we suggest this be run through the Federal Reserve, like the Main Street Lending Program.  This could be added under that program, just as the PPP loan program was added to the current SBA 7(a) loan program.
    • $500 billion.  (This number could be higher or lower depending on the need.  Ultimately, the actual bottom line number doesn’t matter because these are loans that are not forgiven.  They would just be backed by the federal government, like the PPP loans.)
    • Businesses would need to meet the following criteria:
      • Be a small business is defined as a business with no more than 1,500 employees and an annual revenue of no more than $40 million. (Larger small businesses would like to see this number increased to maximum of $150 million.)
      • Be a U.S. based and owned company.
      • Program would begin July 1, 2020 and run through December 31, 2021.
      • Be in business for 7-years prior to COVID-19 outbreak.
      • Be profitable for past 3-years.
      • Be critical to restarting the economy: not a first come first serve.  This would be balanced out among the core industries for companies then to apply for.  The small businesses that would be eligible to apply would fall into the following categories:
        • Manufacturing
        • Resellers
        • Critical ground, air, marine transportation companies, Non-Emergency Medical Transportation providers
        • Healthcare
        • Financial services
        • Defense Industrial Base
        • Chemical Products
        • Hygiene products
        • Energy
        • Construction, architecture, engineering, surveying, mapping
      • Max of $10 million.
      • Loan would start to be repaid after 3-years.
      • Repayment period is 7.5-years
      • Loan rate 2.75 – this is the rate under current SBA EIDL loans for non-profits.  Loan rate cannot go higher than 3.75%, which is current rate of EIDL loans.