Needed Relief for Small Business
This week, the North Carolina House of Representatives Finance committee recommended two COVID-19-related bills (H.B. 1034 and H.B. 1039) which focus on small-business loans. Other benefits of the bills include easing unemployment-claim requirements and waiving tax-filing deadlines.
On Tuesday, the General Assembly reconvened and recommended the bills among their first actions of business. H.B. 1034 would triple the amount of funding that the state offers in low-interest loans to small businesses. Under this recommendation, the North Carolina Golden LEAF Foundation would receive $75 million in funding for small-business loans to organizations of 100 or fewer full-time employees. (This is similar to a $15 million loan program that the foundation recently provided with great success.) The term of loans are generous in length (66 months) and carry an interest rate of 4% for the first six months and 5.5% for the remainder of the term.
It was especially good to see both House bills were recommended unanimously and are advancing to the Rules, Calendar, and Operations of the House Committee, before they head to the floor of the House for a full vote. Hopefully soon!
COVID-19 has had a devastating impact on small businesses’ revenue and has unemployed many North Carolinians as a result. This is a needed step in the right direction to help our small businesses and workforce here in North Carolina.