A letter from the U.S. Senate Committee on Small Business and Entrepreneurship (SCSBE) has been sent to the U.S. Small Business Administration (SBA) urging them to process seemingly abandoned disaster loan applications that were received before the agency deadline.
Senators urge the SBA to process EIDL loan applications
The letter was signed by SCSBE President Ben Cardin (D-Md.) With Senators John Cornyn, Chris Van Hollen and Roger Wicker, along with 44 other senators from across the political division. The letter was received by the SBA administrator, Isabella Casillas Guzman.
Some EIDL loans remain unprocessed
The Covid EIDL program has provided financial relief in the form of low-interest loans to nearly four million small businesses since the onset of the Covid-19 pandemic. The loans, known as the Covid Economic Injury Disaster Loan (EIDL), required that completed applications by applicants be completed and submitted by May 6, 2022, but some still need to be completed. to process.
Senators believe that loans serve as an essential source of capital for small businesses, especially those that cannot get credit from other lenders to survive the ongoing problems of the pandemic.
Many companies continue to struggle
The letter said: “While we recognize that the agency has helped an unprecedented number of small businesses during the pandemic, our offices continue to listen to thousands of potential borrowers waiting to be considered.
“We also continue to hear EIDL applicants with disputed rejections who have not received any communication from the administration in months. The EIDL was a lifesaver for companies during this pandemic, but many of them continue to struggle. “The program is too important to close early. As long as the funds remain, we expect the SBA to process all eligible applications and appeals that have been filed before the application deadline.”
The deadline of May 6 was previously announced at the end of April, which also counted for any modification of applications, requests for increase and reconsideration of denial. Since then, it has emerged that many applications filed before the deadline are still not processed, mainly demanding the SBA’s decision to stop processing certain applications. Instead, they have issued a statement pledging to process what they described as “viable applications”.
The senators added: “Since many applicants have not received a final consideration, it is difficult for us to understand the SBA’s decision to stop processing applications that were submitted before the deadline of 6 p.m. May.
“‘Functionality’ is not an acceptable standard to justify the rejection of a borrower who is eligible and needs it. The limit for denial is eligibility, not the SBA’s willingness to continue processing applications. We find it especially troubling that your agency continues to tell our offices that loans cannot be completed due to depletion of funds when there is $ 800 million left in the loan grant, enough to support more than $ 7 billion. in loans.
Bipartisan support for Covid EIDL loan applications
The SBA has taken some serious criticism for how Covid EIDL loan applications have been handled. This latest letter with the bipartisan support of both Democrats and Republicans will only serve to increase pressure on SBA administrator Isabella Casillas Guzman.
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