Schneider Presses SBA Administrator to Improve Communication on EIDL Program for Small Businesses
Yesterday, Congressman Brad Schneider (IL-10) spoke with Administrator Jovita Carranza of the U.S. Small Business Administration (SBA) on a call to urge the SBA to improve its responsiveness and communication to applicants of the Economic Injury Disaster Loan (EIDL) Program. Schneider discussed the need for the estimated 2 million applicants in the EIDL backlog to be provided with an update on their application status, and for the SBA to provide clearer guidance to applicants about the timeline for consideration and the potential size of their loan.
“Small businesses only benefit from SBA programs like EIDL if they provide greater certainty in this unpredictable economic environment. I have heard from far too many small businesses left in the dark about the status of their EIDL application,” said Schneider. “It is critical that the SBA provide greater responsiveness and clarity to these small business owners so that they can plan for their long-term future. I appreciated talking with Administrator Carranza about these concerns, and look forward to working together to address these issues.”
For months, Schneider has been pressing the SBA to provide great clarity to EIDL applicants. In May, Schneider led a letter to SBA with one-hundred Members—including Small Business Chairwoman Nydia Velazquez—urging the SBA to provide EIDL applicants a greater understanding of their place in the queue and to provide Congress with daily updates on EIDL processing. To date, SBA has failed to implement either of these requests.
Schneider also invited his constituent, Dr. Craig Gerstein, to testify at a Small Business Committee hearing on the EIDL program. Dr. Gerstein spoke to the confusing and cumbersome process of applying for the EIDL program, the impact the de facto $150,000 cap had on his business planning, and the role uncertainty around the loan program had on his long-term outlook.