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Spanberger pressing SBA to improve EIDL application process

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Abigail Spanberger
Abigail Spanberger

Rep. Abigail Spanberger is calling on the Small Business Administration to improve the Economic Injury and Disaster Loan application process and customer service resources available to Virginia small businesses.

During the COVID-19 pandemic, the EIDL program has been used by Virginia businesses to pay fixed debts, payroll, accounts payable, or other operating expenses that they are unable to meet. Last year, Spanberger (D-VA-07) called on the SBA to provide answers about its lack of customer service resources for small business owners and additional information about ongoing delays in EIDL payment processing.

In December, President Biden signed an executive order requiring the SBA to establish baseline user experience measures and deliver a streamlined online disaster loan application process — but Spanberger continues to hear from Virginia small business owners who are unable to get updates regarding their application status.

In a second letter sent to SBA Administrator Isabella Guzman, Spanberger voiced the continued concerns of business owners in the Seventh District who have not received an update on their application or have still not received funds for SBA-approved loans. Additionally, she pressed the SBA on continued delays in EIDL processing, requested updates on how they are working to meet the new user experience and customer service requirements set by President Biden, and asked how the SBA intends to better solicit feedback from American small business owners who previously went through the disaster loan process.

“Unfortunately, my office continues to receive complaints from small business owners in my district experiencing frustrations with the SBA. Constituents who applied for EIDL increases have either not received an update regarding their application or have not received funds in their bank account for loans the SBA approved. For example, my office was recently contacted by a small business owner who was approved for an EIDL increase in October 2021 and still has not received the funds,” said Spanberger in her letter. “While we appreciate the steps SBA has taken to improve customer service, hardworking small business owners across Central Virginia deserve better from their government.”

Spanberger continued, “For small business owners in my district, inconsistent or unhelpful customer service means waiting months for their approved loans, receiving conflicting information, and awaiting updates on the status of their loans. Especially during the COVID-19 pandemic, these loans can mean the difference between staying in business or closing their doors for good.”

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