U.S. Sens. Jim Risch (R-ID) and John Hickenlooper (D-CO) introduced legislation to improve the disaster loan application process and combat fraud.
The Streamlining EIDL Act to improve the Economic Injury Disaster Loans (EIDL) would require the Small Business Administration (SBA) to review the process for submitting EIDL applications. In addition, it would require the SBA to submit a report to Congress detailing steps it has taken to rectify its handling of identity theft cases. Further, the bill would direct the SBA to report how it has recovered improper payments and how it is reconciling previous identity theft allegations with newly filed identity theft allegations. Finally, it would impose deadlines on the EIDL program.
“Small businesses in Idaho have struggled to get meaningful answers on their EIDL applications from the SBA,” Risch said. “They’ve been forced to submit the same document multiple times, received vague and ambiguous responses from the agency, and in some cases, had to contend with fraudsters submitting false applications on their behalf. The Streamlining EIDL Act will go a long way to fix the flaws in the EIDL application process and make these disaster loans accessible to small businesses.”
Sens. Roger Marshall (R-KS), Catherine Cortez Masto (D-NV), and John Kennedy (R-LA) all cosponsored the bill.
“Economic Injury 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.”
Corte Masto added that small businesses applying for disaster relief should not have to jump through hoops to get answers.
“Making it easier for small businesses to secure these critical loans and grants will help them keep their doors open and their workers employed. I’ll keep working with my colleagues to improve and streamline the EIDL Program and ensure Nevada’s small businesses are supported,” she said.