{"id":1330,"date":"2020-08-05T15:48:19","date_gmt":"2020-08-05T15:48:19","guid":{"rendered":"https:\/\/rosen-testing.senate.gov\/2020\/08\/05\/rosen-cornyn-lead-bipartisan-letter-urging-robust-funding-for-economic-injury-disaster-loans-in-next-covid-relief-package-and-removal-of-sba-caps\/"},"modified":"2022-07-13T20:23:43","modified_gmt":"2022-07-13T20:23:43","slug":"rosen-cornyn-lead-bipartisan-letter-urging-robust-funding-for-economic-injury-disaster-loans-in-next-covid-relief-package-and-removal-of-sba-caps","status":"publish","type":"post","link":"https:\/\/www.rosen.senate.gov\/es\/2020\/08\/05\/rosen-cornyn-lead-bipartisan-letter-urging-robust-funding-for-economic-injury-disaster-loans-in-next-covid-relief-package-and-removal-of-sba-caps\/","title":{"rendered":"Rosen, Cornyn Lead Bipartisan Letter Urging Robust Funding for Economic Injury Disaster Loans in Next COVID Relief Package and Removal of SBA Caps"},"content":{"rendered":"<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><b><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">WASHINGTON, D.C. \u2013<\/span><\/span><\/b><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> Today, U.S. Senators Jacky Rosen (D-NV) and John Cornyn (R-TX) led nine of their colleagues in a bipartisan letter to Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-FL) and Ranking Member Ben Cardin (D-MD) urging robust funding for the Economic Injury Disaster Loan (EIDL) and EIDL Advance programs, and the removal of caps imposed by the U.S. Small Business Administration (SBA) in the next COVID-19 relief package.<\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">\u201cSince the CARES Act became law, nationwide the EIDL program has provided nearly 3 million small businesses with over $160 billion in loans, and the EIDL Advance program has provided 5.7 million small businesses with $20 billion in direct cash relief, but such relief can only continue with a new infusion of funds and with long-needed reforms. Therefore, we ask the committee to provide robust funding for EIDL in the next coronavirus relief package and also take steps in such legislation to ensure that SBA cannot place caps on EIDL loans and grants below the levels authorized by Congress in the CARES Act,\u201d <b>wrote the Senators.<\/b><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><b><u><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">BACKGROUND:<\/span><\/span><\/u><\/b><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"> The letter was also signed by Senators Deb Fischer (R-NE), Brian Schatz (D-HI), Mike Rounds (R-SD), Catherine Cortez Masto (D-NV), John Boozman (R-AR), Chris Van Hollen (D-MD), Kevin Cramer (R-ND), Bill Cassidy (R-LA), and Kelly Loeffler (R-GA).<\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"background:white\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">Soon after the&nbsp;<\/span><\/span><\/span><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:#0e101a\"><a href=\"https:\/\/www.rosen.senate.gov\/es\/rosen-votes-83-billion-emergency-coronavirus-funding-package\/\" style=\"color:#0563c1; text-decoration:underline\" target=\"_blank\" rel=\"noopener\"><span style=\"color:#954f72\">CARES Act<\/span><\/a><\/span><\/span><\/span><\/i>&nbsp;<span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">became&nbsp;law, the U.S. Small Business Administration placed arbitrary caps on&nbsp;EIDL&nbsp;loans and&nbsp;EIDL&nbsp;Advance grants. Currently,&nbsp;EIDL&nbsp;loans \u2013 low-interest loans that can be used to cover small business operating expenses \u2013 have been capped at $150,000 per business, instead of the congressionally mandated maximum of $2 million. Additionally, the SBA placed caps&nbsp;on&nbsp;EIDL&nbsp;Advance grants to small businesses of $1,000 per-employee (up to $10,000), rather than the congressionally mandated $10,000 for every eligible small business. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"background:white\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">Last month, Senators Rosen and Cornyn (R-TX) <a href=\"https:\/\/www.rosen.senate.gov\/es\/rosen-cornyn-introduce-bipartisan-legislation-provide-increased-eidl-loans-and-eidl-advance-grants\/\" style=\"color:#0563c1; text-decoration:underline\"><span style=\"color:#0563c1\">introduced the&nbsp;<i>Ensuring Increased Disaster Loans (EIDL) for Small Businesses Act<\/i>&nbsp;(S.4227)<\/span><\/a>. This bipartisan legislation would assist the nation\u2019s small businesses impacted by the coronavirus pandemic by providing an additional $180 billion for the Economic Injury Disaster Loan (EIDL) and&nbsp;EIDL&nbsp;Advance programs. The bill also would prohibit the Small Business Administration (SBA) from arbitrarily capping&nbsp;EIDL&nbsp;loans below $2 million \u2013 the threshold set by Congress \u2013 and require SBA to provide $10,000&nbsp;EIDL&nbsp;Advance grants to all eligible small businesses, regardless of size, as intended by the original CARES Act.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"background:white\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">Last month, the&nbsp;EIDL&nbsp;Advance grant program ran out of funding, and small businesses are no longer receiving this relief.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"background:white\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">In April, <a href=\"https:\/\/www.cornyn.senate.gov\/content\/news\/cornyn-urges-eidl-improvement-texas-small-businesses\" style=\"color:#0563c1; text-decoration:underline\"><span style=\"color:#0563c1\">Senators Rosen and Cornyn led a letter<\/span><\/a><\/span><\/span><\/span> <span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">urging the SBA to&nbsp;eliminate its self-imposed caps on&nbsp;EIDL&nbsp;loans and&nbsp;EIDL&nbsp;Advance grants.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"background:white\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">Senator Rosen directly brought these concerns to SBA&nbsp;Administrator Carranza and Treasury Secretary Mnuchin during a Small Business Committee conference call earlier this year, and&nbsp;on June 10<\/span><\/span><\/span><sup><span style=\"font-size:10.5pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">th<\/span><\/span><\/span><\/sup><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">,&nbsp;<\/span><\/span><\/span><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:#0e101a\"><a href=\"https:\/\/www.rosen.senate.gov\/es\/during-small-business-hearing-rosen-questions-treasury-secretary-mnuchin-sba-administrator-carranza\/\" style=\"color:#0563c1; text-decoration:underline\" target=\"_blank\" rel=\"noopener\"><span style=\"color:#954f72\">Senator Rosen publicly questioned the SBA Administrator<\/span><\/a><\/span><\/span><\/span>&nbsp;<span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:black\">and Treasury Secretary&nbsp;on the SBA\u2019s limits on&nbsp;EIDL&nbsp;and&nbsp;EIDL&nbsp;Advance.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><b><u><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The full text of the letter can be found <a href=\"http:\/\/www.rosen.senate.gov\/es\/sites\/default\/files\/2020-08\/Cornyn-Rosen%20EIDL%20Letter%20to%20Rubio%20and%20Cardin.pdf\/\" style=\"color:#0563c1; text-decoration:underline\">aqu\u00ed<\/a> and below<\/span><\/span><\/u><\/b><b><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">.<u> <\/u><\/span><\/span><\/b><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><b><i>&nbsp;<\/i><\/b><\/span><\/span><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Dear Chairman Rubio and Ranking Member Cardin, <\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing much-needed relief to our nation\u2019s small businesses. However, soon after the CARES Act became law, the U.S. Small Business Administration (SBA) imposed caps on&nbsp;EIDL loans&nbsp;and&nbsp;EIDL&nbsp;Advance grants. As Congress negotiates the fourth COVID relief package, we urge you to recapitalize the Economic Injury Disaster Loan (EIDL) and EIDL Advance programs and remove the caps imposed by the U.S. Small Business Administration (SBA). As the economic storm caused by COVID-19 continues and hurricane, wildfire, and other natural disasters threaten our small business community, it is critical Congress authorize robust disaster loan funding. <\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">SBA has capped EIDL&nbsp;loans used to cover small business operating expenses, at $150,000 per business, instead of the congressionally mandated maximum of $2 million. Similarly, the SBA placed caps&nbsp;on&nbsp;EIDL&nbsp;Advance grants, limiting small businesses to $1,000 per-employee (up to $10,000), rather than the congressionally mandated $10,000 for every eligible small business, regardless of size. Such caps hurt small businesses needing capital to carry them through the pandemic and corresponding economic slowdown. Lack of access to capital has crippled our nation\u2019s smallest and most vulnerable businesses, including minority-owned businesses.<\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Since the CARES Act became law, nationwide the EIDL program has provided nearly 3 million small businesses with over $160 billion in loans, and the EIDL Advance program has provided 5.7 million small businesses with $20 billion in direct cash relief, but such relief can only continue with a new infusion of funds and with long-needed reforms. Therefore, we ask the committee to provide robust funding for EIDL in the next coronavirus relief package and also take steps in such legislation to ensure that SBA cannot place caps on EIDL loans and grants below the levels authorized by Congress in the CARES Act.<\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Separately, while the EIDL and EIDL Advance programs have been a lifeline for millions of small businesses struggling at no fault of their own, we recognize that the program needs better oversight. A recent SBA Office of the Inspector General (OIG) report from July 28, 2020 noted possible fraud by applicants for EIDL loans and advances, citing a small number of cases in which loans and grants may have gone to ineligible individuals. As good stewards of taxpayer money, we urge the Committee to take swift action to incorporate the OIG\u2019s recommendations to address concerns over SBA\u2019s internal controls related to disaster assistance as it works to recapitalize EIDL and remove SBA\u2019s arbitrary caps that have unintentionally hurt small businesses.<\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Thank you for your consideration and for your thoughtful leadership during these unprecedented times to ensure that our nation\u2019s small businesses have the support they need to succeed. We are confident that investing in EIDL and EIDL Advance, and removing SBA\u2019s caps will help unleash the economic potential of American small businesses as they navigate their way through our ongoing pandemic.<\/span><\/span><\/i><\/span><\/span><\/p>\n<p><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><i><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Sincerely, <\/span><\/span><\/i><\/span><\/span><\/p>\n<p class=\"text-align-center\"><span style=\"font-size:11pt\"><span style=\"font-family:Calibri,sans-serif\"><span style=\"font-size:14.0pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">###<\/span><\/span><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>WASHINGTON, D.C. \u2013 Today, U.S. Senators Jacky Rosen (D-NV) and John Cornyn (R-TX) led nine of their colleagues in a bipartisan letter to Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-FL) and Ranking Member Ben Cardin (D-MD) urging robust funding for the Economic Injury Disaster Loan (EIDL) and EIDL Advance programs, and [&hellip;]<\/p>","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21],"class_list":["post-1330","post","type-post","status-publish","format-standard","hentry","category-press_release","tag-jobs-and-economy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - 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