Legislation would extend loan forgiveness to rural businesses previously left behind
Months after the Coronavirus Aid, Relief and Economic Security Act was signed into law, Congress is considering legislation that would include rural businesses and communities initially left out of the stimulus package.
The Rural Equal Aid Act, a bipartisan measure led by U.S. Rep. Cindy Axne (D-Iowa), will provide needed relief to entities with loans through the U.S. Department of Agriculture Rural Development program. Currently, only businesses with loans through the Small Business Administration are eligible to have the principal, interest, and any associated fees owed on the covered loans for a six-month period. This has left rural businesses behind, according to a release.
Under the new proposal, payment relief would extend to businesses with loans through the Rural Microentrepreneur Assistance Program and the Intermediary Relending Program, as well as loans made to public and nonprofit organizations for community facilities, and to businesses, cooperatives, and nonprofits expanding in rural areas.
