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Maloney Calls on SBA to Provide Small Businesses with Disaster Loan Application Status Updates

Apr 28, 2020
Press Release

Maloney Calls on SBA to Provide Small Businesses with Disaster Loan Application Status Updates

Newburgh, NY – Today, Rep. Sean Patrick Maloney (NY-18) called on Jovita Carranza, Administrator of the Small Business Administration (SBA), to provide application status updates to small businesses who have applied for emergency disaster loans and grants through the agency.

“Small businesses in the Hudson Valley have waited for weeks on critically needed emergency disaster advances from the Small Business Administration, and the only thing they’ve gotten back from the agency is silence. We need to cut the government red tape and streamline this process so our small business owners can focus on keeping folks on the payroll and paying their bills,” said Rep. Sean Patrick Maloney.

The Emergency Economic Injury Grants (EEIG) and Disaster Loans (EIDL) programs were designed to provide an emergency advance of up to $10,000 to small businesses and private non-profits that have been negatively impacted by COVID-19, within three days of an application. Small businesses have waited weeks to receive their initial emergency grants. According to local small business owners, the SBA has provided no information, guidance or application status updates to current applicants, claiming the agency cannot provide information on these critically needed loans and grants.

The Paycheck Protection Program and Health Care Enhancement Act, passed by Congress and signed into law by the president last week, provides the SBA an additional $2.1 billion in administrative costs for the EIDL program, which should be used for website and application updates, and to provide more transparency and information during the application process.

Rep. Maloney was joined by a bipartisan group of Members of Congress, including: Rep. Sheila Jackson Lee, Rep. Ayanna Pressley, Rep. Brian Fitzpatrick, Rep. Debbie Mucarsel-Powell, Rep. Jamie Raskin, Rep. Peter Welch, Rep. Lizzie Fletcher, Rep. Adam Smith, Rep. Jennifer Wexton, Rep. Bill Foster, Rep. Earl Blumenauer, Rep. David Cicilline, Rep. Jim Cooper, Rep. James McGovern, Rep. Anna Eshoo, Rep. Albio Sires, Rep. Joe Courtney, Rep. Derek Kilmer, Rep. Stephen Lynch, and Rep. Andre Carson.

Read the letter here, and below:

 

April 28, 2020

Dear Administrator Carranza:

We write today to express concerns with the administration of the Emergency Economic Injury Grants and Economic Injury Disaster Loan (EIDL) program. These grants were meant to provide an emergency advance of up to $10,000 to small businesses and private non-profits that have been negatively impacted by COVID-19, within three days of an application. The program was designed to serve as an immediate cash payment to keep businesses on the brink open while they wait for their EIDL to be processed.

Unfortunately, this has not happened. Instead, businesses across the country have been waiting for weeks to receive their initial emergency grants. When these businesses have reached out to the Small Business Administration (SBA) for guidance and status updates, they have been told that the SBA cannot provide that information. Furthermore, when Congressional caseworkers make official requests for status updates on behalf of our constituents, they too have been refused. The SBA was specifically designed to help small businesses access federal resources. It is unacceptable that individuals cannot obtain the status updates necessary to make tough decisions about their business during this pandemic.

This week Congress passed legislation, the Paycheck Protection Program and Health Care Enhancement Act, providing $50 billion for the EIDL program as well as an additional $2.1 billion for administrative costs. With the inclusion of these additional administrative costs, we urge the SBA to immediately provide status updates to struggling small businesses across the country that are seeking information about their EIDL applications.

We recognize these are challenging times, and we thank you for your work and consideration. We look forward to working with you to ensure our small businesses stay afloat and get timely access to the relief Congress has provided.  

Sincerely,

Sean Patrick Maloney
Member of Congress