WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV), a member of the Senate Committee on Small Business and Entrepreneurship, and Senator John Cornyn (R-TX) announced their re-introduction of the Ensuring Increased Disaster Loans (EIDL) for Small Businesses Act. This bipartisan legislation would assist our nation’s small businesses impacted by the coronavirus pandemic by providing an additional $15 billion for Economic Injury Disaster Loan (EIDL) Advance grants. The bill would also remove the Small Business Administration’s (SBA) caps on EIDL loans below $2 million – the threshold set by Congress – and require SBA to provide the full $10,000 EIDL Advance grants to all eligible small businesses, regardless of size or location, as intended by the original CARES Act. Rosen and Cornyn first introduced the EIDL for Small Businesses Act in July 2020.
“As the economic storm caused by COVID-19 continues to threaten our small business community, it is critical that we take further steps to support small businesses in Nevada and across the country,” said Senator Rosen. “I’m proud to re-introduce this bipartisan bill that will provide additional funding for EIDL Advance grants, as well as eliminate SBA’s caps on EIDL loans and grants to make crucial funding available to eligible small businesses. I will continue working to ensure that our nation’s small businesses have the support they need to succeed during this challenging time.”
“As the coronavirus continues to wreak havoc on our economy, Texas’ small businesses are bearing a tremendous financial burden,” said Senator Cornyn. “The EIDL program has helped many businesses keep their doors open during the pandemic, and this legislation would help make sure they are able to receive the full assistance they need to stay afloat and help get our economy back on track.”
BACKGROUND: More specifically, the bipartisan Ensuring Increased Disaster Loans (EIDL) for Small Businesses Act would:
- Provide $15 billion in appropriations for EIDL Advance grants;
- Prohibit the U.S. Small Business Administration (SBA) from placing maximum caps below $2 million on Economic Injury Disaster Loans, which have a maximum loan amount of $2 million, as established by the CARES Act. Currently, SBA has capped EIDL loans at $150,000 per business. Under the bill, all eligible small businesses shall receive EIDL funding in the amount calculated using SBA’s current EIDL formula, up to $2 million;
- Prohibit the SBA from placing limitations on the Economic Injury Disaster Loan Advance. Under the bill, all eligible small businesses shall receive the full $10,000 grant provided by the CARES Act, regardless of size or location;
- Require EIDL Advance grants to be disbursed to eligible small businesses within 15 days; and
- Require SBA to submit a monthly report to the House and Senate Committees on Small Business and Appropriations on 1) the status of the Disaster Loan Account, including obligations, allocations, and amounts undistributed/unallocated; 2) allocations, obligations, and expenditures for all open disasters; and 3) an estimate of when available appropriations will be exhausted.