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In a letter to the U.S. Small Business Administration (SBA), U.S. Senator Sherrod Brown and 47 other senators urged the agency to process all COVID Economic Disaster Injury Loan (EIDL) applications received. before the deadline of May 6, 2022.

The EIDL programme, which provided loans to nearly 4 million businesses, was “an essential source of capital”, particularly for businesses that could not obtain the necessary credit from other lenders, and provided loans during the pandemic, according to a statement from the Cleveland Democrat’s Bureau.

In April, the SBA announced the May 6 submission deadline for COVID EIDL loan modifications, requests for increases, and denial reviews.

In the letter, Brown said the SBA had stopped processing all eligible applications submitted by the deadline and was now only processing “feasible” applications. He also argued that SBA officials said not all applications could be processed due to depleted funds, while Brown and the other senators insisted that $800 million in grants from loans remain “sufficient to support over $7 billion in loans,” the letter said. .

Brown and the other senators asked the SBA to resume processing COVID EIDL applications received before the agency’s application deadline and to ensure that applicants with outstanding appeals are given due consideration.

“While we recognize that the agency has helped an unprecedented number of small businesses throughout the pandemic, our offices continue to hear from thousands of potential borrowers awaiting review,” Brown wrote in the letter. of July to the SBA Administrator. “We also continue to hear from EIDL candidates with contested refusals who have not received any communication from the administration for months.”

In the letter, Brown called the EIDL program “a lifeline for businesses throughout this pandemic” and wrote that “the program is too important to be terminated prematurely. As long as funds remain, we will expect the SBA to process all eligible applications and appeals that were submitted by the application deadline.”

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