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Stevens, Wild Call Out Lack of Transparency with SBA Economic Injury Disaster Loan Program

August 13, 2020

WASHINGTON — On Wednesday, U.S. Representatives Haley Stevens (MI-11) and Susan Wild (PA-07) voiced concerns with the Small Business Administration’s Emergency Economic Injury Disaster Loan program, calling out a lack of transparency that has left their constituents in the dark about the status of their loan during this economic crisis.

Economic Injury Disaster Loans (EIDLs) are intended to provide economic relief to small businesses and non-profit organizations experiencing a temporary loss of revenue due to emergencies like the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorized the Small Business Administration (SBA) to provide up to $10,000 as an advance payment within three days of receiving a valid EIDL application. However, some eligible business owners are still waiting for their EIDL advance after submitting their applications as early as April, and after being told by an SBA representative that their grant was approved. These struggling small businesses are desperate for the relief they were promised, and the SBA has not provided an adequate explanation for these delays.

“We urge the SBA to provide greater transparency on the processing of prior EIDL Advance loans and find a solution for EIDL Advance applicants who were promised funds, only to be still waiting for them months later and now being told that the funds are not coming,” the lawmakers wrote in a letter to SBA Administrator Jovita Carranza. “We request that the SBA increases its collaboration with congressional offices to make the congressional mailbox more responsive to individual questions on applications. Finally, we ask that the SBA provides a better assessment on EIDL application processing times. We look forward to working with you as we continue to fight for more appropriations for the EIDL Advance program in the next COVID relief package”

The full text of the letter can be found attached or below.

“Dear Administrator Carranza,   

“We are writing to share the concerns of our constituents regarding the lack of transparency related to the issuance of Emergency Economic Injury Disaster Loans (EIDLs) through the EIDL Advance program and the processing time for EIDL applications.

“While we recognize the unique challenges faced by the Small Business Administration (SBA) given the impact of COVID-19, particularly given the unprecedented volume of applications received, applicants are often left in the dark on processing times as well as whether or not they will be receiving any funds at all. 

“The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorizes the SBA Administrator to provide up to $10,000 as an advance payment, in the amount requested, within three days after receiving an EIDL application from an eligible entity. As our staff continues to work with business owners to obtain information on their EIDL applications, they are repeatedly made aware of constituents who have been waiting for their EIDL Advance for months. Upon inquiries submitted to the SBA’s Office of Disaster Assistance congressional portal, they have been told that, “The SBA is unable to process additional EIDL Advance requests. [And that the] SBA has allocated all funds appropriated for the EIDL Advance program.” This is an unacceptable response for an applicant who submitted their materials back in April and had been told that their EIDL Advance grant was approved by an SBA representative.  

“Requests for follow up information continue to provide inadequate information, sometimes not addressing the questions raised and simply responding with the same stock e-mail as before. These responses frequently come over a week later, providing no additional information.   

“Lastly, it is crucial that applicants for the EIDL program receive updates on the expected timeframe for processing their loans. At this point in time, congressional offices are simply told that an application is “processing” and that no further information can be provided. These business-saving loans are crucial and information on the expected timing for a decision is paramount, particularly in this time of great financial uncertainty for many.

“We urge the SBA to provide greater transparency on the processing of prior EIDL Advance loans and find a solution for EIDL Advance applicants who were promised funds, only to be still waiting for them months later and now being told that the funds are not coming. We request that the SBA increases its collaboration with congressional offices to make the congressional mailbox more responsive to individual questions on applications. Finally, we ask that the SBA provides a better assessment on EIDL application processing times. We look forward to working with you as we continue to fight for more appropriations for the EIDL Advance program in the next COVID relief package. Thank you for your attention to this matter.”

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