Fund and Restore the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) Emergency Advance program to help small businesses, independent contractors and gig workers affected by COVID-19 Shutdowns.

This SBA program was created to help the smallest of small businesses and it ran out of money shortly after launching.  According to the SBA’s website, it was created, “…for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons)…”  The businesses and people this program was created to help, need immediate assistance to stay in business, due to these extraordinary times.  Many of the businesses and people who qualify for this program were shut out of the SBA’s Paycheck Protection Program (PPP) as well as other government programs like unemployment.

Fund the EIDL with $100 Billion.
The funding for the EIDL and $349 Billion for the PPP ran out less than 2 weeks into the programs and tens of thousands of applications are still awaiting approval.

Remove the stipulation that the advance cannot be more than $1000 per employee.  This stipulation was added AFTER the program launched (due to funding shortages).  It hurts the exact businesses and people it was created to help; small entrepreneurs, independent contractors and self-employed (gig workers).  Many of them don’t have 10 employees, but they do have business expenses like; rent or mortgage interest, taxes, utilities and other expenses to pay for, without income, as a direct result of COVID-19 related shutdowns.  The up to $10,000 advance was meant to keep businesses going during these unprecedented times and this stipulation makes it impossible for far too many businesses and people who need assistance, to qualify for it.  Again, this stipulation was added by the SBA, AFTER the program launched, due to funding shortages and tremendous demand and need for the program.

Correct advances, if a larger advance would have been sent under the original guidelines.  If an EIDL recipient, received a smaller advance due to the last minute limit of $1000 per employee, they should receive another advance for the difference they would have received under the original plan guidelines.  A second advance should be treated as if it were part of the initial advance and have identical terms including not requiring repayment.

As intended, make the EIDL Emergency Advance, “available within days of a successful application, and the loan advance will not have to be repaid.”  (This is the language the SBA used when the program launched and can still be found on their website at the time of this writing).  Businesses need these funds immediately to help cover expenses and remain in business.

Lower the interest rate of the EIDL to 1% and defer interest accrual and loan payments for 6 months or longer.  The SBA’s PPP loan is set at a 1% interest rate.  Businesses need time to reopen and generate revenue in order to be able to start making payments.

Make those who were approved for the PPP, ineligible to apply for the EIDL.  The main purpose of the EIDL is to get small businesses including; independent contractors and self-employed persons, advances of up to $10,000 ASAP to keep their business going.  If a business is approved for the SBA’s PPP loan, then they do not need funds from the EIDL.  Grandfather any loans that were already approved.