By Kate Goodrich
On April 13, 2020, Governor Greg Abbott announced establishment of a $50 million loan fund for Texas small businesses, designed to help them survive and rebuild from the challenges caused by COVID-19. Goldman Sachs and LiftFundUS, a nonprofit community development financial institution (CDFI), and other CDFIs are collaborating to provide the $50 million in loans. The loan, made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP), is designed to be used for payroll so that employees can continue to receive paychecks and small businesses can retain their employees. Goldman Sachs will provide the capital as part of its nationwide $550 million commitment to COVID-19 relief, and LiftFund, along with other CDFIs, will administer the funding to qualified small businesses. According to the Governor, if all the required stipulations are met, small businesses can have their loans forgiven in full by the SBA. Business owners can apply for a PPP loan and find more information about the program on the LiftFund website.
In his press release, the Governor declared that small businesses are “the heart of the economy” and stressed that we must begin to think of re-stimulating the economy while still focusing on stopping the spread of COVID-19. When asked about a timeline for businesses fully re-opening, the Governor said that he was not planning a “rush the gates” approach, emphasizing that he will not allow every business to re-open all at once. While the state’s hospitalization rate seems to be improving, he said, access to testing is a still key component of re-opening the economy.
An announcement regarding statewide guidance on how long schools will stay closed is expected later this week.
Kate Goodrich is a governmental affairs consultant in Jackson Walker’s Austin office. She started her career as a federally registered lobbyist in Washington, D.C., and grew to become a senior advisor to legislators at the Texas Capitol. Kate’s background in state and federal government gives her an in-depth and practical knowledge of the legislative and appropriations processes. She is a respected member of the governmental affairs community and has forged deep relationships at the Capitol and beyond. Kate graduated from the University of Texas School of Law and is licensed to practice law in the state of Texas.
- JW Coronavirus Insights & Resources microsite »
- COVID-19 & Your Business: Frequent Questions »
- JW Insights (April 8, 2020): CARES Act & New, Expanded Small Business Lending (Update #2) »
- JW Insights (April 13, 2020): CARES Act Update – Federal Reserve and U.S. Treasury Establish Main Street Business Lending Program to Provide Liquidity to Mid-Size Businesses »
- JW Insights (April 13, 2020): CARES Act Update – Federal Reserve and U.S. Treasury Establish Municipal Liquidity Facility to Provide Financial Assistance to States, Cities, and Counties »
Please note: This article and any resources presented on the Jackson Walker Coronavirus microsite do not constitute legal or medical advice.