U.S. Rep. Dwight Evans (D-PA) requested last week answers from the Small Business Administration (SBA) regarding why as many as 20 Philadelphia small businesses have been denied assistance.
All of the businesses were denied advance financing of up to $10,000 each after waiting months for a decision on a loan application.
“These small businesses have been struggling during the COVID pandemic and they turned to SBA for help,” Evans, vice chair of the House Small Business Committee, said. “They applied for an Economic Injury Disaster Loan (EIDL) months ago and should have received at least the advance funding to help them stay afloat while they waited to hear back on the full loan. They were counting on this lifeline and I want them to have it.”
Evans said that several small businesses applied for the loan in March or April and some have fallen into the “poor credit” category. He said his office was trying to advocate for their right to at least get the advance.
“However, those constituents have received emails today explaining that EIDL advance funds are depleted and they would not be receiving those funds,” he said. “These are folks who after coming through my office and opening inquiries were told to ‘update their banking’ information to receive their advances and they had done so several times, only to now be told that no funds are available and their advances will not be forthcoming.”
On July 17, the House Small Business Committee held a hearing entitled “Oversight of the Small Business Administration and Department of Treasury Pandemic Programs.” U.S. Small Business Administrator Jovita Carranza testified at the hearing.
Evans stated that if his answers were not completely answered by the SBA through the hearing, he is expected to follow up his inquiry in writing.
“If this is happening in Philadelphia, is it happening in other parts of the country?”