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"Chairwoman Velázquez on SBA Improvements to COVID-19 EIDL Program"

Summary

A statement dated March 24, 2021 issued by House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) after the Small Business Administration announced reforms to the COVID-19 Economic Injury Disaster Loan (EIDL) program. Velázquez says the committee heard from entrepreneurs about problems with the program and credits Administrator Guzman with acting on those concerns. According to the statement, the reforms move loan calculations from 6 to 24 months and raise the loan cap from $150,000 to $500,000. The statement says the changes will be retroactive for businesses that already participated.

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Chairwoman Velázquez on SBA Improvements to COVID-19 EIDL Program

March 24, 2021

Washington, D.C.— Today, House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) issued the following statement after the Small Business Administration (SBA) announced a series of reforms to the COVID-19 Economic Injury Disaster Loan (EIDL) program:

“EIDL has been a vital resource for struggling small businesses since it was opened up to firms hurt by the pandemic over a year ago. The program has provided billions of dollars’ worth of working capital to millions of small businesses to help them stay afloat during this once-in-a-lifetime crisis. Though the program has helped save many businesses, our Committee has heard from countless entrepreneurs about problems that were blunting the program’s positive impact.

“Administrator Guzman has heeded these concerns and taken decisive action to make EIDL better meet the needs of small business owners. These announced changes will ensure EIDL provides increased relief to more small business owners. By moving loan calculations from 6 to 24 months and increasing the cap on loans from $150,000 to $500,000, these reforms will provide more working capital to small businesses in need. These reforms will be retroactive, ensuring that those who have already participated in the program won’t lose out on these expanded benefits. I was pleased to work with the Biden administration on constructing these reforms. I will continue to work to ensure these relief programs are responsive to the evolving challenges entrepreneurs face during this crisis.”

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