U.S. Senators Jim Risch (R-ID) and John Hickenlooper (D-CO) introduced legislation to improve the disaster loan application process and fight fraud.
The EIDL Streamlining Act to Improve Economic Disaster Lending (EIDL) would require the Small Business Administration (SBA) to review EIDL’s application submission process. Additionally, it would require the SBA to submit a report to Congress detailing the steps it has taken to rectify its handling of identity theft cases. Additionally, the bill would direct the SBA to report how it recovered irregular payments and how it reconciles previous identity theft allegations with newly filed identity theft allegations. Finally, it would impose deadlines on the EIDL program.
“Small Idaho businesses have struggled to get meaningful responses on their EIDL applications from the SBA,” Risch said. “They were forced to submit the same document multiple times, received vague and ambiguous responses from the agency, and in some cases had to deal with scammers submitting bogus claims on their behalf. The EIDL Streamlining Act will go a long way to correcting flaws in the EIDL application process and making these disaster loans accessible to small businesses.
Senators Roger Marshall (R-KS), Catherine Cortez Masto (D-NV) and John Kennedy (R-LA) all co-sponsored the bill.
“Economic disaster loans have been a lifeline for small businesses throughout the pandemic,” Hickenlooper said. “This bill will help businesses stay open and prevent fraud, a win-win situation.”
Corte Masto added that small businesses asking for disaster relief shouldn’t have to put in the effort to get answers.
“Making it easier for small businesses to access these essential loans and grants will help them keep their doors open and their workers employed.” I will continue to work with my colleagues to improve and streamline the EIDL program and ensure that small businesses in Nevada are supported, ”she said.