Nydia Velázquez Intros Bill to Help Young Entrepreneurs
As the Chair of the House Small Business Committee, Congresswoman Nydia Velázquez (D-NY) introduced legislation that would provide loan relief for recent college graduates who launch or work for small enterprises. Under her proposal, founders of business startups could secure three years of deferment on student loans. Additionally, entrepreneurs that create new ventures in economically distressed areas could be eligible for $20,000 in loan forgiveness. “We’ve seen time and again that when new businesses launch they can spread opportunity in areas that are economically and financially disadvantaged,” Velázquez said. “For those entrepreneurs who willing to give back to these communities, additional student debt assistance would be available.” Today, around a quarter of new entrepreneurs are aged 20-34, a significant decline from the mid-1990s when this younger demographic comprised 34% of new business entrepreneurs. Velázquez’s bill would also assist employees of startups, granting loan forgiveness of up to $3,000 per year. Employees may request this benefit for up to 5 years, for an aggregate of $15,000 in loan forgiveness. The current amount of student loans has increased tenfold in the last decade. The cost of paying for and financing a college education has become a significant hurdle for recent graduates interested in pursuing a career in entrepreneurship. More here.