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As Flagship SBA COVID-19 Relief Programs Run Out of Money, Crow Demands Congress Go Back Into Session; Provide More Money for SBA Programs

April 16, 2020

Crow’s letter demanding more money for SBA programs comes as both EIDL and PPP programs run out of funding

As small business owners in Colorado and across the country struggle to get the answers they need from the Small Business Administration, Congressman Crow called on Speaker Nancy Pelosi, Minority Leader Kevin McCarthy, Small Business Committee Chair Nydia Velázquez, and Small Business Committee Ranking Member Steve Cabot to rapidly increase funding for the Small Business Administration.

"Our economy is in a nosedive as we continue to deal with both the public health and economic crisis. It is now time to reconvene, debate these measures, and vote on them," said Crow. "We must make sure to get our small businesses, hospitals, and working families the help they need."

Specifically, Crow calls for:

  • At least $10 billion in additional funding for the Economic Injury Disaster Loans (EIDL) grant program

  • At least $50 billion in additional funding for disaster loans in the EIDL program;

  • An additional $225 million for the SBA's salaries and expenses account;

  • A careful reexamination and reform of the SBA's hiring processes in order to scale personnel necessary to meet borrower demand.

In the letter, Crow writes, "I have heard from small businesses across my district that, since the March 18 declaration of an economic injury disaster in Colorado, many of them have been unable to access the EIDL loan program, have received no response from the SBA, or have been given conflicting information about the requirements for receiving a $10,000 EIDL grant. Nationwide, we have heard that over 3 million businesses have applied for assistance—if all were to be awarded an EIDL grant, we would need to have $30 billion set aside to meet our goal of providing $10,000 per small business. This program will only continue to fall short given that there are over 30 million small businesses in the United States."

Crow's letter comes as both the Paycheck Protection Program and the Economic Injury Disaster Loans grant program run dry leaving thousands of businesses who wish afloat to keep their employees on payroll forced to decide between closing their doors and firing their staff. The EIDL program allows all small businesses in designated economic disaster areas -- which today applies nationwide -- to apply for up to $2 million in low-interest loans, and the CARES Act stipulated that the first $10,000 of those loans are grants that do not need to be paid back.

The only member of the Colorado delegation to serve on the Small Business Committee, Crow has worked closely with small business owners hosting virtual webinars and roundtables. He has introduced two bills to help small business owners during the COVID-19 crisis including the Increasing Access to Capital Act to make it easier and faster for small businesses to get a loan during the coronavirus and the SBA Business Stabilization Direct Loan Program Act, a bill that would cut SBA disaster loan interest rate from 3.5 percent to zero.

The full text of the letter is available here and below:

Dear Speaker Pelosi, Majority Leader McCarthy, Chairwoman Velázquez, and Ranking Member Chabot:

I am writing today with grave concern with respect to funding for the Economic Injury Disaster Loan (EIDL) program and the Small Business Administration's (SBA) capacity to handle the surge of loan applications filed in response to the ongoing pandemic. In any future legislation, I believe we must address the funding shortfall with immediate funding for EIDL grants and loans, while also identifying creative solutions to meet borrower demand.

On March 18, 2020, the State of Colorado was declared an economic injury disaster area, making our state's 610,000 small businesses eligible for over $7 billion in EIDL funding as mandated by PL116-23, the Coronavirus Preparedness and Response Supplemental Appropriations Act. The program was further expanded by Section 1107 of PL116-136, the Coronavirus Aid, Recovery, and Economic Security Act to include $10 billion for Emergency EIDL grants of $10,000 per small business. The law also provided $675 million for salaries and expenses at the SBA and another $25 million for the Office of the Inspector General.

I have heard from small businesses across my district that, since the March 18 declaration of an economic injury disaster in Colorado, many of them have been unable to access the EIDL loan program, have received no response from the SBA, or have been given conflicting information about the requirements for receiving a $10,000 EIDL grant. Nationwide, we have heard that over 3 million businesses have applied for assistance—if all were to be awarded an EIDL grant, we would need to have $30 billion set aside to meet our goal of providing $10,000 per small business. This program will only continue to fall short given that there are over 30 million small businesses in the United States.

Paired with the current tumultuous rollout of the Paycheck Protection Program, it is clear that we must do more for the American people: we must appropriate more funds to these loan programs, provide the SBA with the resources it needs to succeed, and work creatively to help the SBA perform its mission of helping small businesses.

In any interim emergency legislation or CARES 2.0 package, I urge you to consider the following:

• At least $10 billion in additional funding for the EIDL grant program;

• At least $50 billion in additional funding for disaster loans in the EIDL program;

• An additional $225 million for the SBA's salaries and expenses account;

• A careful reexamination and reform of the SBA's hiring processes in order to scale personnel necessary to meet borrower demand.

With these additions, we can help the SBA succeed in addressing this growing national calamity. Without additional bold action, this crisis will compound, and I fear that the consequences will be disastrous for years to come.

Thank you for your consideration of this request and your hard work on behalf of the American people.

Sincerely,

JASON CROW Member of Congress

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