U.S. Rep. Ted Deutch is calling on the federal government to expedite small business loans authorized by the recently-approved federal CARES Act.
That act was approved to help the nation through the dire economic impacts of the novel coronavirus outbreak.
As part of that legislation, small businesses can apply for an Economic Injury Disaster Loan (EIDL) loan of up to $10,000. Wednesday, Deutch authored a letter to U.S. Small Business Administration (SBA) Administrator Jovita Carranza urging the feds to administer those loans within three days of a small business owner submitting an application.
A provision of the CARES Act installed that three-day requirement.
“The intent of the three-day provision is to provide a critical source of funding to bridge the time between a small business submitting an EIDL application and the business receiving approval of their loan application,” Deutch wrote.
“Small businesses that are applying for the EIDL and also requesting an immediate $10,000 within three days of submitting their application are in dire financial need. The economic impacts of the coronavirus pandemic are making it impossible for many small businesses to keep their employees on the payroll, to make rent and mortgage payments, and meet their basic business needs. Receiving the $10,000 payment can keep a business from permanently closing.”
Deutch says he’s heard from South Florida businesses that have waiting more than two weeks to receive those loans, however.
“I strongly urge your Agency to quickly provide small businesses requesting the $10,000 with the funding they need as they wait for their EIDL applications to be resolved. This $10,000 is a critical funding bridge for small businesses in the present economic climate,” Deutch continued in his letter to Carranza.
“Thank you for your prompt attention to this matter. I look forward to continuing to work with you to assist our small businesses and their employees.”
South Florida has served as the epicenter of the outbreak in the state. Deutch represents portions of Broward and Palm Beach counties, which have ranked among the top three counties in the state in terms of positive tests.