Small Business Majority Lauds SBA’s Decision to Expand the Targeted EIDL Advance Grant Program; Urges More Grant Assistance Opportunities
Statement from Awesta Sarkash, Government Affairs Director of Small Business Majority, on the U.S. Small Business Administration’s decision to expand its Targeted Economic Injury Disaster Loan Advance grant program and its impact on small business recovery
The U.S. Small Business Administration’s (SBA) decision to open its $25 billion Targeted Economic Injury Disaster Loan (EIDL) Advance grant program to applications from more small businesses is a step in the right direction in helping hard-hit entrepreneurs who are desperate for this relief.
While economies are reopening around the country, business is not back to “normal” for many small business owners. Our recent survey found more than 1 in 4 small businesses may not survive past three months without funding or market changes, and 10% are still temporarily closed. These challenges are compounded by the fact that many small businesses, particularly those owned by people of color, have struggled to access aid through the Paycheck Protection Program (PPP) and other federal relief programs.
Given the rate at which these businesses are still struggling on their road to recovery from the pandemic, we are glad the SBA is expanding the Targeted EIDL Advance grant program to allow more eligible small businesses to apply for funds. At the same time, the SBA must also work to expedite approval of requests that have already been submitted, and prioritize reconsideration requests that have been made.
What’s more, to have a full understanding of this program and assist the SBA in clearly communicating processes to the 85,000 small businesses and 1,000 business and community organizations within our network, we encourage the SBA to release data about its invitation process and how many applications are still pending.
While these are important steps, ultimately these small-dollar grants will not be enough to ensure vulnerable small businesses have the tools they need to succeed. Until conditions greatly improve for our nation’s job creators and innovators, we will continue to call on Congress to provide more direct grant assistance for small businesses that have been greatly harmed by the pandemic and urge the SBA to deliver grant funds as swiftly and efficiently as possible.
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 80,000 small businesses and 1,000 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.