Evans Wants Answers from SBA on Denied Small Biz Advances
PHILADELPHIA (July 16, 2020) – Congressman Dwight Evans (PA-03), vice chair of the House Small Business Committee, is calling on the U.S. Small Business Administration to explain why as many as 20 Philadelphia small businesses have been denied advance financing of up to $10,000 each while they waited months for a decision on a loan application.
“These small businesses have been struggling during the Covid pandemic and they turned to SBA for help. They applied for an Economic Injury Disaster Loan (EIDL) months ago and should have received at least the advance funding to help them stay afloat while they waited to hear back on the full loan. They were counting on this lifeline and I want them to have it.
“They applied in March or April, and some fell into the ‘poor credit’ category but my office was advocating for their right to at least the advance. However, those constituents have received emails today explaining that EIDL advance funds are depleted and they would not be receiving those funds. These are folks who after coming through my office and opening inquiries were told to ‘update their banking’ information to receive their advances and they had done so several times, only to now be told that no funds are available and their advances will not be forthcoming.
“This is no way to treat American small business owners and I expect answers!
“If this is happening in Philadelphia, is it happening in other parts of the country?”
Evans said the issue could come up at Friday’s Small Business Committee hearing with SBA Administrator Jovita Carranza or he may follow up in writing.
Evans represents Pennsylvania’s 3rd Congressional District, which includes Northwest and West Philadelphia and parts of North, South, Southwest and Center City Philadelphia.