Legislation would help nonprofit organizations, small businesses

Two bills recently introduced in the state House aim to help nonprofit organizations and small businesses negatively affected by the coronavirus pandemic.

One bill would create a COVID-19 Banking on Nonprofits Program while the second bill would create a COVID-19 Banking on Small Business Program. Both programs would be within the Department of Banking and Securities and would allow for cooperation between banks and credit unions and small businesses and nonprofit organizations for loan modifications,
loan deferrals and repayment plans.

Small businesses and nonprofits must be current on loan or mortgage payments to be eligible.

“Many of our small businesses and nonprofits are contemplating closing their doors,” state Rep. Joe Ciresi (D-Montgomery), the bills’ sponsor, said. “They do not have the same resources as larger corporations, and many times they are missing out on pandemic relief banking opportunities only because they do not have an attorney or financial specialist on call 24/7. If we want to give them a chance to survive this pandemic, we need to make sure they have the same chances at extensions of credit and deferred loans as the bigger corporations. I am working on this pair of bills to support our hardworking small business owners and the nonprofits that need this help the most.”