SBA Disaster Loan Program Running out of Money as Problems Mount

The Small Business Administration has been at the center of the Trump administration’s plan to help SMBs survive as the coronavirus continues to disrupt the economy; while it seems as if the PPP program has improved in recent days the Economic Injury Disaster Loan program is facing some serious issues; businesses tell the New York Times that they are not receiving the funds they were initially approved for and in many cases they are only getting a fraction; companies who apply can receive up to $2mn with an initial grant of $10,000 that would not need to be paid back; companies are not receiving the grant and many are now worried they will receive nothing at all; “The fact that S.B.A. is limiting Economic Injury Disaster Loans to an initial disbursement of $15,000 shows that there is a clear need for more resources for this program,” said Senator Ben Cardin, Democrat of Maryland, to the New York Times; as with the PPP the EIDL was never intended to handle such an influx of applications and Congress needs to figure out a way to add funds before it is too late. NY Times