Wyden supports canceling student loan payments during emergency

Also intros bill to rescue small businesses

WASHINGTON (KTVZ) -- Sen. Ron Wyden, D-Ore., said Friday he will support an emergency student loan payment and relief plan that would provide much-needed help to federal student loan borrowers through immediate cancellation of monthly student loan payments during the national emergency caused by coronavirus.

Here's the rest of his news release on the proposal:

The proposal would require that Congress authorize the U.S. Department of Education to make monthly student loan payments on behalf of borrowers, equivalent to the amount due for all federal student loan borrowers (including Direct Loans and Federal Family Education Loans) for the duration of the national emergency declarations.

The proposal would guarantee a minimum $10,000 loan payoff for all federal student loan borrowers.

“Students and families dealing with serious coronavirus health concerns in Oregon and nationwide need immediate and consistent relief from the economic disruptions rippling out from this public health crisis,”said Wyden, ranking member of the Senate Finance Committee. “This proposal provides that urgently-needed support by canceling monthly student loan payments throughout this pandemic, and helping students and borrowers with a minimum of $10,000 in targeted relief.”

The proposal was unveiled earlier this week by Senate Democratic Leader Chuck Schumer (D-NY), Senate Committee on Health, Education, Labor, and Pensions Ranking Member Patty Murray (D-WA), Senate Committee on Banking, Housing, and Urban Development Ranking Member Sherrod Brown (D-OH), and Senator Elizabeth Warren (D-MA). 

Students and federal loan borrowers were particularly hard-hit by the last economic crisis and remain under significant financial strain, an issue compounded by the coronavirus outbreak.

According to Donald Trump, the Department of Education will reportedly allow borrowers to suspend payments for only 60 days and temporarily waive interest, Wyden said.

The Senate Democrats’ proposal goes further, providing immediate relief to students and borrowers through targeted, sustained financial assistance for, at minimum, $10,000 in payments. Borrowers would receive credit toward forgiveness and loan rehabilitation for payments made by the Department on their behalf, and all payments made by the Department would be tax-free for borrowers.

The proposal also suspends all involuntary debt collections and wage garnishment for borrowers who have defaulted while the Department is making payments on borrowers' behalf.

Importantly, at the termination of this program, the Department will institute a 90-day “grace period,” during which missed payments will not result in fees or penalties, including negative credit reporting.

The proposal is included as part of Senate Democrats’ bold Phase 3 proposal for at least $750 billion to wage war against COVID-19 and the economic crisis facing every American. Senate Democrats’ Phase 3 proposal puts workers and families first while ensuring that necessary resources are delivered to address every corner of the public health crisis, including funds to address burgeoning capacity issues at hospitals, child care and education, and more.

A summary of the emergency student loan payment and relief plan is here.

---

Wyden, Cardin Introduce Bill to Rescue Small Businesses

Legislation would provide influx of cash, help maintain payroll

Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Senate Small Business Committee Ranking Member Ben Cardin, D-Md., on Friday introduced legislation to rescue small businesses from the economic crisis caused by the coronavirus pandemic and the Trump administration’s failure to ensure widespread testing.

The Save America’s Main Street Act would provide immediate cash flow through a tax rebate, help businesses maintain payroll through a tax credit and defer estimated tax payments.

“Without swift action, many small businesses closing their doors to help slow the spread of the pandemic won’t open them again. Small businesses need an influx of cash to replace the customers they have lost overnight and help keep workers on their payrolls,” Wyden said. 

“Small businesses are under immense pressure due to the unprecedented public health measures cities and states have had to implement to keep us safe,” Cardin said. “With narrow margins and low reserves, small businesses depend on day-to-day cash flow, which has screeched to a halt. America’s small businesses need capital and they need it fast. This bill will get funds directly to the small businesses most affected by the coronavirus, so they can keep their workers on payroll and stay current on their bills.”

“The U.S. Women's Chamber of Commerce supports the Save America's Main Street Act because it will quickly and effectively assist small business owners - including women and minority owned firms - to have the cash they need to keep their doors open, communities functioning and families safe during this difficult time,” said Margot Dorfman, CEO, U.S. Women’s Chamber of Commerce.

"Small businesses and entrepreneurs are the backbone of our communities. They provide the services, products, and daily necessities for creating vibrant neighborhoods. In this time of crisis, we need to protect the American Dream and ensure small businesses have the tools, capital, and community to support them. SEED SPOT fully supports the Save America’s Main Street Act," said C'pher Gresham, CEO of SEED SPOT.

"Etsy strongly supports the Save America’s Main Street Act, which would provide direct and meaningful relief for our nations most vulnerable entrepreneurs and self-employed.  Etsy sellers and microbusinesses need immediate assistance to weather this crisis. We urge Congress to pass these supports immediately," said Althea Erickson, Head of Advocacy and Impact, Etsy. 

“We are aggressively advocating along with our coalition partners to secure immediate and bipartisan financial support for America’s smallest businesses to assist in helping entrepreneurs survive this national public health crisis,” said Keith Hall, the president and CEO of NASE. “From tax rebates to delaying quarterly tax payments and providing wage credits to small businesses, each will go a long-way in preserving our small businesses along Main Street. We encourage lawmakers from both sides of the aisle to support this legislation as well as the small business community.”

To help address cash flow issues and prevent further mass layoffs, the Save America’s Main Street Act would:

• Provide Immediate Tax Rebates
• Qualifying small businesses with $1 million or less in gross receipts and 50 or less employees will receive a check equal to 30% of the gross receipts reported in a previous year, up to $75,000.
• Provide a Percent Wage Credit to Help Small Business Keep Workers on Payroll
• A 50 percent employee retention payroll tax credit for wages paid to employees during the COVID-19 emergency. The credit would be available to any small business that has been forced to close due to a federal, state or local government directive or as a result of quarantining of employees.
• The credit would also be available to any business that has experienced a 25 percent drop in year-over-year gross receipts. This employee retention credit would be available for the first $7,500 in wages paid per employee over the next four months.
• Delay Estimated Tax Payments
  • This legislation would defer all 2020 estimated payments for small business owners until September, when more can be known about the business’s annual performance. Further, the bill reduces the required estimated payments from 100 percent of the previous year liability to 75 percent. 

Text of the legislation is available here. 

A one-page summary of the legislation is available here.