Following local reports that small business owners have not received Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA), U.S. Senator Josh Hawley (R-Mo.) sent a letter to SBA Administrator Jovita Carranza demanding the funds be distributed as soon as possible. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the SBA must provide grants of up to $10,000 to businesses within three days of their application to the EDIL program.
“I have heard from many of my constituents who have applied for relief that they have not yet received the emergency advance grant promised by the EIDL program under the CARES Act,” Senator Hawley wrote. “You must take action to distribute these emergency advances as quickly as possible and also clarify the expected grant amount for applicants. I further urge that the principal loan amounts be disbursed rapidly and that you work to communicate with applicants as to when they should expect to receive their loans. Small businesses and workers across the country are urgently waiting for this relief to help keep the lights on during this pandemic.”
Read the full text of the letter here or below.
Dear Administrator Carranza:
It has come to my attention that applicants are experiencing significant delays with the Economic Injury Disaster Loan (EIDL) program. I have heard from many of my constituents who have applied for relief that they have not yet received the emergency advance grant promised by the EIDL program under the CARES Act. As of yesterday, reporting suggests that small businesses across the country have yet to receive these funds. This is concerning and must be rectified immediately.
As you know, Congress included a provision in the CARES Act to allow EIDL applicants to receive an emergency advance grant to allow for immediate relief while applicants waited for their loans to be processed. Section 1110 of the CARES Act is clear that these funds can be used for operating costs, do not need to be paid back, and that applicants can expect that these advances be delivered within three days of submitting an application. Yet many of my constituents have been waiting far longer than this three day period. While I understand that the SBA is processing a surge of applications, it is also incumbent upon you to ensure that these funds are disbursed expeditiously.
Applicants also require clarity about the amount of emergency grant they can expect to receive. Some applicants are also concerned that they may receive less than the $10,000 maximum payment they have requested. It was the intent of Congress that applicants can request up to $10,000 in order to provide immediate relief for their small businesses. Even though this program has high participation and may be in need of more funding by Congress, existing appropriations can and should be distributed to small businesses.
You must take action to distribute these emergency advances as quickly as possible and also clarify the expected grant amount for applicants. I further urge that the principal loan amounts be disbursed rapidly and that you work to communicate with applicants as to when they should expect to receive their loans. Small businesses and workers across the country are urgently waiting for this relief to help keep the lights on during this pandemic. Thank you for your attention to this urgent matter.
Sincerely,
Josh Hawley
United States Senator