The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, called on Congressional leaders to immediately provide further appropriations to the Paycheck Protection Program (PPP) and urged the Small Business Administration to address significant funding and communication issues related to the Economic Injury Disaster Loan (EIDL) program.
In a letter sent to congressional leaders, today, NFIB noted the urgency for Congress to take action on PPP and requesting “immediate authorization and appropriations to increase Economic Injury Disaster Loans (EIDLs) and Emergency Grants from the Small Business Administration (SBA).”
“The original appropriation for the PPP forgivable loans may be exhausted as soon as this week. As the program operates on a first-come, first-served basis, further delays in appropriations will slow the forgivable loan approval process and lock out those business owners who are only recently eligible to apply such as independent contractors and self-employed individuals. If the funds are exhausted or financial institutions are forced to limit applications, the smallest businesses will be harmed the most.
“NFIB supports the immediate appropriation of an additional $251 billion for the PPP forgivable loans.”
A separate letter sent to SBA, NFIB urged the agency “to address the funding and communication issues concerning the Economic Injury Disaster Loan (EIDL) program.”
“An NFIB Research Center survey released on April 9, 2020, shows that half of small businesses have applied for EIDLs with nearly every owner also applying for the advanced Emergency Grants of up to $10,000. The same survey found that of those who have applied only 4% had been approved while the vast majority of applicants still had not received any communication regarding their application. As of April 9, no business owner surveyed had received a loan or a grant.
“Late last week, NFIB began hearing from members that the SBA was implementing the EIDL program in a manner inconsistent with the statute and Congressional intent … If the SBA is concerned that they cannot fulfill that request due to lack of funding, the SBA should communicate that issue with the public and request more funding from Congress, rather than limiting loans and grants to small businesses on the brink.”
The full letter to the Small Business Administration can be found here.
The full letter to Congressional leaders can be found here.