WASHINGTON – U.S. Senator Kevin Cramer (R-ND) joined a letter led by Senators Jacky Rosen (D-NV) and John Cornyn (R-TX) to Senate Committee on Small Business and Entrepreneurship Chairman Marco Rubio (R-FL) and Ranking Member Ben Cardin (D-MD) urging robust funding for the Economic Injury Disaster Loan (EIDL) and EIDL Advance programs, and the removal of caps imposed by the U.S. Small Business Administration (SBA) in the next COVID-19 relief package.
“Since the CARES Act became law, nationwide the EIDL program has provided nearly 3 million small businesses with over $160 billion in loans, and the EIDL Advance program has provided 5.7 million small businesses with $20 billion in direct cash relief, but such relief can only continue with a new infusion of funds and with long-needed reforms. Therefore, we ask the committee to provide robust funding for EIDL in the next coronavirus relief package and also take steps in such legislation to ensure that SBA cannot place caps on EIDL loans and grants below the levels authorized by Congress in the CARES Act,” wrote the Senators.
The letter was also signed by Senators Deb Fischer (R-NE), Brian Schatz (D-HI), Mike Rounds (R-SD), Catherine Cortez Masto (D-NV), John Boozman (R-AR), Chris Van Hollen (D-MD), Bill Cassidy (R-LA), and Kelly Loeffler (R-GA).
After the CARES Act became law, SBA placed arbitrary caps on EIDL loans and EIDL Advance grants. Currently, EIDL loans – low-interest loans that can be used to cover small business operating expenses – have been capped at $150,000 per business, instead of the congressionally mandated maximum of $2 million. Additionally, the SBA placed caps on EIDL Advance grants to small businesses of $1,000 per-employee (up to $10,000), rather than the congressionally mandated $10,000 for every eligible small business.
Last month, the EIDL Advance grant program ran out of funding, and small businesses are no longer receiving this relief.