WIAT — U.S. Senator Doug Jones (D-Ala.) today spoke in the Senate chamber to propose a new model to direct money to small businesses by funding payroll service companies.
His proposal is called the ‘Small Business Lifeline Fund.’
The new fund that would offer short-term, no-interest “bridge” loans to employers that would be directed through their payroll processing company.
Senator Jones says by providing a new fund for loans that small businesses can process directly through their payroll companies, they can cut the red tape that would otherwise slow down money getting into the hands of the workers who need it most.
Jones says the ‘Small Business Lifeline Fund’ is a creative solution that we could implement quickly and on a short-term basis to help fill the gap.
Senator Jones, who is a member of the Senate Banking Committee.
The Small Business Lifeline Fund would:
- Offer loans to fund up to 75-percent of a business’ last three months of payroll;
- Provide money directly to businesses and workers without the bureaucratic obstacles they would otherwise face in getting loans from a bank at this time;
- Help alleviate pressure on the unemployment insurance program by keeping workers paid;
- Ensure payroll taxes continue to be paid in order to protect important programs like Medicare and Social Security.
(Erica Pettway, WIAT)