Senators urge SBA to process EIDL loan applications

0

A letter from the US Senate Committee on Small Business and Entrepreneurship (SCSBE) has been sent to the United States Small Business Administration (SBA) urging them to process apparently abandoned disaster loan applications that were received before the agency deadline.



Senators urge SBA to process EIDL loan applications

The letter was signed by SCSBE President Ben Cardin (D-Md.) along with Senators John Cornyn, Chris Van Hollen and Roger Wicker, along with 44 other senators from across the political spectrum. The letter was received by SBA Administrator Isabella Casillas Guzman.

Some EIDL loans remain unprocessed

The Covid-EIDL program has provided financial assistance in the form of low-interest loans to almost four million small businesses since the start of the Covid-19 pandemic. The loans, known as the Covid Economic Injury Disaster Loan (EIDL), required applicants’ completed applications to be completed and sent by May 6, 2022, but some have yet to be processed.

The senators believe that loans are an essential source of capital for small businesses, especially those unable to obtain credit from other lenders to survive the continuing problems of the pandemic.

Many companies continue to struggle

The letter read: “While we recognize that the agency has helped an unprecedented number of small businesses throughout the pandemic, our offices continue to hear from thousands of potential borrowers awaiting review.

“We also continue to hear from EIDL candidates with contested refusals who have not received any communication from the administration for months. EIDL has been a lifeline for businesses throughout this pandemic, but many continue to struggle. The program is too important to be stopped prematurely. While funds remain, we expect the SBA to process all eligible applications and appeals that were submitted by the application deadline.

The May 6 deadline had previously been announced at the end of April, which also counted for any changes to applications, requests for raises and reconsideration of refusals. It has since emerged that many applications submitted before the deadline remain unprocessed, primarily due to the SBA’s decision to stop processing certain applications. Instead, they issued a statement pledging to address what they described as “workable apps.”

The senators added, “Given that many applicants did not receive a final exam, we find it difficult to understand the SBA’s decision to stop processing applications that were submitted before the submission deadline. of May 6.

“’Workability’ is not an acceptable standard to justify the rejection of an eligible and needy borrower. The barrier to denial is eligibility, not SBA’s willingness to continue processing applications. We find it particularly disturbing that your agency continues to tell our offices that loans cannot be completed due to depletion of funds when there is $800 million of loan subsidy remaining – enough to support over $7 billion. dollars of loans.

Bipartisan support for Covid EIDL loan applications

The SBA has drawn serious criticism over its handling of Covid EIDL loan applications. This latest letter containing bipartisan support from Democrats and Republicans will only serve to increase the pressure on SBA Administrator Isabella Casillas Guzman.

Receive the latest headlines from Small Business Trends. follow us on Google News.

Image: Depositphotos


More in: EIDL loan
Share.

About Author

Comments are closed.