The EIDL rationalization law is a bipartisan bill introduced to the US Senate to improve the Economic Disaster Loan (EIDL) application process as well as to combat fraud in the program. The goal is to simplify the process so that small businesses can get their requests answered quickly and efficiently.
New legislation would simplify the EIDL loan application process for small businesses
The need for such a bill is a testament to the level of bureaucracy that exists when small business owners complete their EDIL applications. According to Sen. Jim Risch (R-Idaho), small businesses in his state are struggling to get the answers they need from the SBA on their EIDL applications.
Senator Risch goes on to say: “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 fraudsters submitting bogus claims to them. name.
Adding: “Small businesses deserve a program that really works as it should, and the EIDL Streamlining Act will go a long way in correcting the flaws in the EIDL application process and making these loans disaster disaster. accessible to small businesses. “
A slow and unorganized review process is also partly responsible for the delay in the application process. In view of these and other issues facing small business applicants, the EIDL Streamlining Act:
- Impose deadlines in the application process for the EIDL program
- Require the SBA to conduct a full review of the EIDL application submission process
- Request the SBA to submit a report to Congress detailing the steps it has taken to correct the way it has handled identity theft cases
- Require the SBA to report how it recovered irregular payments and how it reconciles previous identity theft allegations with newly filed identity theft allegations
The bipartite legislation was co-sponsored by Sens. John Kennedy (R-La.), Jim Risch (R-Idaho), Roger Marshall (R-Kan.), John Hickenlooper (D-Colo.) And Catherine Cortez-Masto (D-NÃ©v.)
You can consult the full text of the Streamline the EIDL law for more details.
Making EIDL more efficient
Small business owners ask for EIDL when they really need help. The recent tornadoes that have decimated many small family businesses in Kentucky are a prime example. For businesses like Mayfield Consumer Products, which has been completely destroyed, a slow and lengthy application process can prevent homeowners from starting the recovery process. And this of course extends to the many employees who worked at the factory.
The EIDL Streamlining Law is a step in the right direction to speed up a process that is currently not as efficient as it could be. According to one of the bill’s co-sponsors, Senator Kennedy, âLouisiana’s small businesses face enough adversity. They don’t need a bureaucracy to make it harder to get clear answers to their EIDL requests or to fight fraud.
When it comes to fraud, the problem is also a big problem. The SBA granted $ 4.5 billion in unnecessary EIDL loans in 2020. Sole proprietors with absurd claims were awarded millions of dollars for claiming they had a million employees. In fact, 15 sole proprietors have made such far-fetched employee claims in their applications. That’s $ 4.5 billion that could have gone to deserving small business owners affected by the pandemic.
Here is the passage of the EIDL Streamlining Act without too much opposition so small business owners can get the help they need when they need it.