Evans: SBA Funding Should Go Primarily to Local, Small Businesses; SBA Must Be Transparent

(VIDEO of his testimony, about 2 minutes: https://youtu.be/STq_lpxgOYU?t=2287)

WASHINGTON (April 23, 2020) – Congressman Dwight Evans (PA-03), vice chair of the House Small Business Committee, testified today in the committee's hearing on priorities for the Paycheck Protection Program (PPP) created last month under the CARES Act.

The program is set to receive another $310 billion under a new bill expected to pass the House today. Evans emphasized the new bill sets aside a minimum of $60 billion of that funding to be channeled through community banks, credit unions, minority depository institutions and community development financial institutions (CDFIs).

"Channeling a minimum of $60 billion of this new funding through community institutions should help many small businesses that missed out on the first round, including minority-owned and women-owned businesses," Evans said.

"I believe there will probably need to be a third round to help save jobs because the need is so massive. My priorities for future legislation also include more hospital funding beyond the $75 billion this new bill provides; aid for state and local governments so they can continue to provide Medicaid, police, fire, ambulance and other vital services; and help for the critical U.S. Postal Service, which is needed to enable safe vote-by-mail on a large scale."

The new bill also provides $25 billion for coronavirus testing, which Evans said is crucial for safely reopening the country.

Today's hearing also addressed the Economic Injury Disaster Loan program and EIDL grants made available through the Small Business Administration to small employers impacted by COVID-19. The new bill also provides $60 billion more for EIDL, including $10 billion for grants and $50 billion to leverage an estimated $350 billion in loans.

Evans testified, "As my colleagues have said, this is an unprecedented time. This pandemic is a true test of our resiliency as a nation.

"Small businesses have been devastated. In response, Congress has allocated over $700 billion to SBA programs to help these businesses.

"However, my office has heard that many local businesses are unable to access these needed loans. This is greatly concerning.

"It is essential that these SBA programs fulfill the objective of Congress—to help small businesses who cannot survive without these loans. News that large restaurant chains received $20 million in PPP loans has eroded the public trust and confidence in these programs and in government.

"While many of us are wearing masks today, we need the SBA to be transparent with taxpayer dollars.

Evans also testified, "In addition to thinking about what small businesses need right now, it is imperative to think about how small business operations will change in the future. COVID-19 is creating a new norm.

"Social distancing will likely be required for the indefinite future. Consequently, Temple's Small Business Development Center in Philadelphia is creating two new business training centers.

"The first is The Center for Hospitality Resilience, which will instruct small businesses about new regulations that affect the food, hotel, and event industries.

"The second is The Center of Digital Transformation for Small Businesses. This center will help small businesses transition to e-commerce, which is quickly becoming the main source of revenue for many businesses.

"It is crucial that we help small businesses not only get through this immediate crisis, but assist them in preparing for the future."

To keep up with news and government actions about the outbreak, Evans invites constituents to follow his updates on Facebook, Twitter and Instagram, @RepDwightEvans, including his Facebook and Instagram Stories. They can also sign up for his e-newsletter at evans.house.gov/contact/newsletter/ Evans' office is continuing to provide service to constituents by telephone or email; the Philadelphia office number is 215-276-0340.

Evans represents Pennsylvania's 3rd Congressional District, which includes Northwest and West Philadelphia and parts of North, South, Southwest and Center City Philadelphia.

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