COVID Relief for Nebraska's Small Businesses

Small businesses are the backbone of Nebraska's economy. From your favorite store on main street to your local coffee shop, small businesses bring vibrancy and prosperity to our communities. There are 172,958 small businesses in Nebraska that employ just under half of all workers in our state.

Unfortunately, many of these businesses have been forced to temporarily close to slow the spread of COVID-19. This is a necessary step to protect the health of Nebraskans, but it has also led to uncertainty for many business owners and their employees.

To help the nation through this crisis, Congress recently passed and President Trump signed into law the CARES Act. This legislation allocated $349 billion to the Small Business Administration (SBA) for the purpose of managing a loan program for small and medium-sized businesses, as well as others negatively impacted by COVID-19. Loans administered under the Paycheck Protection Program (PPP) are designed to cover payroll and other expenses for businesses with 500 employees or fewer.

In addition to covering payroll, PPP loan recipients may also use funds to cover business-related expenses, such as rent, paid sick or family leave, insurance premiums, and interest on mortgage obligations. The portion of the loan used for payroll and other eligible business expenses will qualify for forgiveness.

The purpose of the Paycheck Protection Program is to help businesses pay their employees at their current base pay until they are able to return to business as usual – even if the business is closed during this time. PPP loans were designed to allow businesses to rehire employees they previously had to let go due to the impacts of COVID-19. It is my hope that this program will help Nebraska's small businesses help their employees until this difficult time has passed.

The effects of COVID-19 have hit Nebraskans hard, and I am pleased that our number one economic driver, agriculture, is also eligible for these loans. Any farm or ranch business with fewer than 500 employees that retains its workers and covers payroll is eligible to apply for a PPP loan and will receive the same benefits as other businesses covered under the program. Self-employed individuals, including "gig" economy workers and independent contractors, are eligible to apply as well.

On April 3, the SBA officially launched this program and began accepting PPP applications. Since then, Nebraska's banks and other SBA-certified institutions have stepped up to the plate to provide struggling businesses with the assistance they need. As of April 7, the SBA had received nearly 8,000 applications from Nebraska small businesses, totaling about $1.5 billion in requested funds.

Paycheck Protection Program loans will be provided on a first-come, first-served basis until the June 30 deadline. If you are eligible and would like additional information, I urge you to contact your local bank or visit the SBA's website to find the lender nearest you.

As your U.S. senator, I want to make sure these forgivable loans are as accessible as possible. My staff has been working with many small business owners to answer their PPP questions, and I encourage you to reach out to my offices in Omaha, Lincoln, Scottsbluff, or Kearney to see how we can help.

COVID-19 has certainly made life harder for Nebraska businesses and workers. The disruptions it has caused have affected our lives in ways that none of us saw coming, but I hope the Paycheck Protection Program and other efforts by the federal government will help restore some normalcy until we defeat this virus.

Thank you for participating in the democratic process.