Strickland holds Small Business Administration accountable for disaster loans – The Suburban Times – Natural Self Esteem

Announcement by the Office of Rep. Marilyn Strickland.

Congresswoman Marilyn Strickland (WA-10) sent a bipartisan letter demanding accountability from the Small Business Administration for how it has processed Economic Injury Disaster Loan (EIDL) applications. She was joined by 70 of her peers, including three Republicans.

“For months I have been hearing directly from South Sound small business owners about the myriad of problems they have encountered processing their disaster economic damage loan applications.” said Strickland. “The Small Business Administration (SBA) has failed to provide adequate service or communication to these struggling business owners across the country. Small businesses need answers from the SBA, and I will fight for my constituents until we get them.”

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“The Economic Injury Disaster Loan (EIDL) program was launched to provide a lifeline to struggling businesses during the pandemic.” said Congressman Hayes who wrote the letter. “Nevertheless, so many were left with disappointing news that funds were exhausted without warning. Transparency is critical for those businesses awaiting answers from the Small Business Administration.”

At this time, the Small Business Administration is not accepting new COVID-19 EIDL applicants. Small business owners faced problems where applications were denied without explanation or an opportunity to appeal, and they waited months without notice only to be told that funds had run out. Additionally, grantees were not informed that the grant was not the last step in the application process, but that funds had to be committed before the SBA deadline, thereby losing funding.

The full text of the letter can be found below and here.

Tacoma Community College

Dear Administrator Guzman,

We are writing to express concern about the lack of transparency surrounding the end of the Economic Injury Disaster Loan (EIDL) program. Congress has allocated over $1 trillion in critical support to hard-hit small businesses, including funding for the Economic Injury Disaster Loan (EIDL) program. While EIDL has helped more than 3.9 million small businesses across the country, many were excluded from relief in the first round or left in the dark about the status of their Small Business Administration (SBA) applications. We urge you to work with these small business EIDL applicants to provide immediate relief. You deserve clarity.

Thousands of small businesses are still feeling the effects of the pandemic, and some have had to shut down all together. Not only have many of these companies lost revenue for two years, but it will take them years to financially recover from the debt they racked up to stay afloat during that time. Since the SBA stopped accepting applications for new COVID-EIDL loans on January 1, 2022 and on May 5, 2022 stopped accepting both applications for loan increases and applications for reconsideration of previously denied loan applications, our offices have numerous calls and emails are being received from disappointed small business owners in our districts who have been left without recourse or relief.

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What we find most concerning is that the SBA has attributed its recent decision to running out of funds, but has failed to communicate this with our constituents in a timely manner and has even provided conflicting information throughout the process to those with pending applications – despite the due diligence exercised by SBA what was required of them in good time. In particular, we’ve heard from citizens with pending applications who were told by the SBA that they would be or were being approved and that the deadline would not be an issue, or whose requests went unanswered for months and were all subsequently denied after funds had been exhausted been. These constituents were not informed by the SBA that approval is not the last step in the application process, but that the funds must be committed before the deadline. We’ve also heard from some constituents who were never given an opportunity to make adjustments to their original request, or who were denied outright with little or no explanation but were asked to appeal the decision by May 6, 2022, only to be rejected again due to funding issues.

The lack of transparency and accountability in the SBA’s selection and processing of applications is alarming, as is the repeated pattern of misunderstandings experienced by our constituents. We urge you to provide clarity on how the SBA processes applications and intends to address these deficiencies in the future. We look forward to hearing from you on these topics.

Representatives Marilyn Strickland, Jahana Hayes, Alma Adams, Colin Allred, Jake Auchincloss, Don Bacon, Karen Bass, Sanford Bishop, Suzanne Bonamici, Salud Carbajal, Troy Carter, Ed Case, David Cicilline, Yvette Clarke, J. Correa, Jim Costa, Angie Craig, Charlie Crist, Madeleine Dean, Suzan DelBene, Anna Eshoo, Adriano Espaillat, Brian Fitzpatrick, Jesús García, Sylvia Garcia, Josh Gottheimer, Raúl Grijalva, Jamie Herrera Beutler, Pramila Jayapal, Henry Johnson, Ro Khanna , Daniel Kildee, Derek Kilmer, Ron Kind, Ann Kirkpatrick, Ann Kuster, James Langevin, Al Lawson, Barbara Lee, Susie Lee, Mike Levin, Alan Lowenthal, Elaine Luria, Carolyn Maloney, Doris Matsui, James McGovern, Gregory Meeks, Joe Neguse, Eleanor Norton, Tom O’Halleran, Ilhan Omar, Frank Pallone, Donald Payne Jr., Stacey Plaskett, Mark Pocan, Katie Porter, Jamie Raskin, Deborah Ross, Linda Sanchez, Adam Schiff, Kim Schrier, David Scott, Elissa Slotkin , Adam Smith, Greg Stanton, Thomas Suozzi, E Ric Swalwell, Mark Takano, Dina Titus, Rashida Tlaib, David Trone and Jennifer Wexton.

Ed Selden Carpet One

US Representative Marilyn Strickland serves on the House Transportation and Infrastructure Committee and is the only African American woman to serve on the House Armed Services Committee. She is a member of the New Democrat Coalition, one of the first Korean-American women elected to Congress and the first African American woman elected to represent the Pacific Northwest at the federal level.

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