Spanberger pressures SBA to improve EIDL application process
Representative Abigail Spanberger calls on the Small Business Administration to improve the economic injury and disaster loan application process and customer service resources available to small businesses in Virginia.
During the COVID-19 pandemic, the EIDL program has been used by businesses in Virginia to pay fixed debts, wages, accounts payable, or other operating expenses that they are unable to pay. Last year, Spanberger (D-VA-07) called the SBA to provide answers about its lack of customer service resources for small business owners and additional information about ongoing delays in processing EIDL payments.
In December, President Biden signed a decree demanding that the SBA establish baseline user experience metrics and provide a streamlined online disaster loan application process — but Spanberger continues to hear from small business owners in Virginia who can’t get upgrades day regarding the status of their application.
In one second letter Sent to SBA Administrator Isabella Guzman, Spanberger expressed the continuing concerns of Seventh District business owners who have not received an update on their application or have not yet received funds for SBA-approved loans. Additionally, she pressed the SBA on the continued delays in processing the EIDL, asked for updates on how they are working to meet the new user experience and customer service requirements set by President Biden. , and asked how the SBA intends to better solicit feedback from US small business owners. who have already gone through the disaster loan process.
“Unfortunately, my office continues to receive complaints from small business owners in my district who experience frustrations with the SBA. Voters who applied for increases from the EIDL did not receive an update on their application or did not receive funds in their bank account for SBA-approved loans. For example, my office was recently contacted by a small business owner who was approved for an EIDL raise in October 2021 and has yet to receive the funds,” Spanberger said in his letter. “While we appreciate the steps the SBA is taking to improve customer service, hard-working small business owners across Central Virginia deserve better from their government.”
Spanberger continued, “For small business owners in my district, inconsistent or unhelpful customer service means waiting months for their loans to be approved, receiving conflicting information, and waiting for updates on the status of their loans. Especially during the COVID-19 pandemic, these loans can mean the difference between staying in business or shutting down for good.