Evans Bill Would Generate $7 Billion More for Small Business Economic Injury Disaster Loans, Speed Up Program
PHILADELPHIA (March 23, 2020) – Congressman Dwight Evans (PA-03) today introduced a bill that would generate $7 billion more in financing for Economic Injury Disaster Loans through the Small Business Administration and speed up the program, which is also available to many nonprofit organizations.
“As vice chair of the House Small Business Committee, I am focused on helping small businesses and their employees get through the Covid-19 outbreak. Small businesses often don’t have the same access to capital that large companies do, and I want to make sure they and their employees get the help they need during this difficult time – as quickly as possible,” Evans said.
To get economic injury disaster loan proceeds into borrowers’ hands faster and easier, Evans’ bill would make the following enhancements to expedite the EIDL process:
• Direct a preliminary injection of up to $10,000 within three days of the application being filed based on basic eligibility criteria: small, and a business or nonprofit. The remainder of the application would be processed afterward;
• Allow the use of credit scores to expedite processing;
• Allow waivers of affiliation rules;
• Bypass the governor certification process;
• Allow start-up businesses to apply; and
• Appropriate $1 billion in new subsidy to support additional $7 billion in EIDL lending and $177 million for the administration of the program.
Evans’ bill is part of a package being introduced today by the Democratic majority on the House Small Business Committee. Evans also supports the other bills in the package, which include:
• A new $100 billion direct loan program for small businesses to help them pay off or refinance existing debt, provide employee benefits, pay employee wages and related taxes, and acquire technological and other resources that enable continuity of operation.
• Recovery Grants of up to $100,000 to small businesses that could demonstrate losses due to the outbreak, for purposes such as providing sick leave, maintaining payroll and making rent or mortgage payments;
• Providing an additional $75 million to small business development centers and an added $25 million to women’s business centers;
• Requiring the federal government to grant flexibility to its small business contractors and expedite the contract award process so affected contractors could begin generating revenue.
More details about the legislative package will be available at https://smallbusiness.house.gov/news/
Evans represents Pennsylvania’s 3rd Congressional District, which includes Northwest and West Philadelphia and parts of North, South, Southwest and Center City Philadelphia.