Keep Main Street Open Act
Summary
The "Keep Main Street Open Act" aims to provide loans to eligible small businesses during government shutdowns. The bill directs the Small Business Administration (SBA) to establish a loan program for businesses experiencing losses due to shutdowns. These loans would have a maximum interest rate of one percent and a maximum maturity of one year after the shutdown ends.
Expected Effects
If enacted, this bill would provide a financial safety net for small businesses during government shutdowns. This could help prevent business closures and job losses during periods of government dysfunction. The loans are intended to cover losses incurred during the shutdown period.
Potential Benefits
- Provides financial assistance to small businesses during government shutdowns.
- Offers loans with a low interest rate (1%).
- Allows businesses to cover losses incurred during the shutdown period.
- Could prevent business closures and job losses.
- Supports the stability of local economies.
Potential Disadvantages
- Potential for increased government debt and budget deficits.
- Risk of loan defaults if businesses are unable to recover after the shutdown.
- Administrative burden on the Small Business Administration.
- May not fully cover all losses experienced by small businesses.
- The definition of 'eligible applicant' relies on existing criteria, which may exclude some deserving businesses.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the 'general welfare' provision, as it aims to support small businesses and mitigate the economic impact of government shutdowns.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).