WASHINGTON – Today, U.S. Senators Jim Risch (R-Idaho) and John Hickenlooper (D-Colo.) Introduced the bipartisan EIDL Streamlining Act to improve the economic disaster loan (EIDL) application process for small businesses and fight programmatic fraud. The legislation will require the Small Business Administration (SBA) to provide timely and meaningful responses to small business applicants and submit a report to Congress on how it is combating fraud within the program.
Other sponsors of the legislation include U.S. Senators Roger Marshall (R-Kan.), Catherine Cortez Masto (D-Nev.) And John Kennedy (R-La.).
“Small businesses in Idaho have struggled to get meaningful answers on their EIDL applications from the SBA,” Senator Risch said. âThey 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.
“Economic disaster loans have been a lifeline for small businesses throughout the pandemic,” Senator Hickenlooper said. “This bill will help businesses stay open and prevent fraud, a win-win solution.”
“The EIDL program has been an essential tool in providing assistance to small businesses grappling with the economic impacts of the pandemic”, Senator Marshall said. However, the SBA has failed to provide timely updates on the status of pending claims, leaving many Kansas small business owners in limbo as to whether or not they will be able to. meet their financial obligations The EIDL Streamlining Act will improve the SBA’s communications with voters while strengthening fraud prevention measures and improving the integrity of this program.
“Small businesses asking for disaster relief shouldn’t have to put in the effort to get the answers they need” said Senator Cortez Masto. “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.
âSmall businesses in Louisiana face enough adversity. They don’t need bureaucracy to make it harder to get clear answers to their EIDL requests or to fight fraud. I am grateful to work with Sens. Risch and Hickenlooper to improve the EIDL program so that small businesses can start investing in their communities again â, Senator Kennedy said.
Fund: EIDL Streamlining Act would impose common-sense timelines on the EIDL program, require SBA to conduct a full review of the EIDL application submission process, order SBA to submit report to Congress detailing the steps it has taken to rectify its handling of the identity theft case, requiring the SBA to report how it collected irregular payments, and requiring the SBA to report how it reconciles the allegations previous identity theft claims with newly filed identity theft allegations.
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