What’s behind the delay in EIDL payments?
The SBA is getting heat to provide additional information about ongoing delays in Economic Injury Disaster Loan payment processing.
The EIDL program is used by businesses to pay fixed debts, payroll, accounts payable or other expenses that they are unable to meet due to the ongoing COVID-19 pandemic. In April, the SBA increased the maximum loan amount from $150,000 to $500,000 — but Congresswoman Abigail Spanberger (D-VA-07) has heard from dozens of Central Virginia small business owners who are unable to get an update from the SBA regarding their request for an increase on their EIDL loan.
In a letter sent to SBA Isabella Guzman, Spanberger voiced the concerns of Central Virginians who have been unable to obtain information and answers from the SBA about their EIDL application. She also pressed the SBA on continued delays in EIDL processing, asked about any additional steps it can take to address the high volume of outstanding EIDL applications, and questioned the SBA about its current customer service offerings and whether or not they can be improved.
“Many of my constituents have reported several issues in their attempts to apply for a loan limit increase or a Targeted EIDL Advance,” Spanberger said. “First, we have heard from small business owners who applied for the loan increase in early April and have not received an update on their application for more than 90 days. Constituents have also reported issues reaching someone at SBA’s Customer Service Center. Some have reported that even when they do get through to a customer service representative, the representative is unable to provide helpful information about the status of their application. Furthermore, applicants’ emails have been going unanswered for weeks.
“At a time when countless small businesses are trying to regain their financial footing, it is vital for these entrepreneurs to receive the assistance they need from the programs put in place by Congress. They deserve timely and accurate information about the status of their requests for funds that could prevent them from shutting their doors permanently,” Spanberger said.