Schneider Speaks with SBA Administrator about Urgent Need for Better Guidance to Small Business Applicants, Lenders

On Wednesday afternoon, in a call between House Small Business Committee members and Jovita Carranza, Administrator of the Small Business Administration (SBA), Congressman Brad Schneider (IL-10) called on the SBA to provide updated guidance to both lenders and loan applicants.

Schneider urged the SBA to clearly communicate to lenders under the Paycheck Protection Program (PPP) so that once the House passes and the President signs into law additional funding for the program (expected today), lenders have the necessary guidance and technical support to get funding out the door. Additionally, Schneider pushed the SBA to provide applicants to the Economic Injury Disaster Loan (EIDL) program with timely, updated information on the status of their application.

"I've spoken with numerous businesses in my district, many of whom received PPP loans, but also many of whom have been locked out of the program. I've also heard from many banks in our community, some that say that they were able to secure PPP loans for almost 99 percent of those who applied, and others that seemed to have had almost the opposite results. It is imperative that the SBA fix the many back-end problems that bottlenecked lenders from getting loans approved – like the SBA's eTran system – so that the Administration can properly disburse this next round of funding efficiently and effectively," Schneider said.

"At the same time, I have heard great frustration from constituents about their inability to get accurate and timely information on the status of their EIDL application. Many have been in the dark for weeks. I told the Administrator Carranza how critical it is for the SBA to provide these businesses with updated information on their EIDL applications so they can make informed decisions about their long-term financial outlook. For many, these loans represent the difference between staying in business and closing for good," Schneider concluded.