The Travesty of the EIDL Program
Yesterday, I spoke with two people who received their EIDL increases from $150K to $500K this week after waiting four months to get the money. The first business was down 70% during covid as his core customers were literally shut down. He desperately needed the money and could do with more. It’s a miracle that he has survived the four months he has been waiting for it. The second business owner’s revenue increased 300% during Covid. It’s a travesty that he is getting a long-term low-interest economic injury disaster loan from the government.
EIDL loans are NOT traditional SBA loans. The EIDL program is designed to help a business recover from a disaster. The program was designed with a hurricane, earthquake, or tornado in mind – in a small geographic area. It was never intended to deal with a vast national issue such as Covid-19.
I can understand why the SBA chose to cut the program from $2 M to $150K at the beginning of Covid and hand the money out with little supporting documentation to back up the need. But 17 months into the disaster, there is no need to be offering EIDL loans to businesses whose revenue was up 300% in 2020.
Let’s help the business owners who need the help !! This is not an entitlement program.