By Aaron Allen, The Seattle Medium
Last week, Congresswoman Marilyn Strickland (WA-10) introduced H.R. 2727, the Economic Injury Disaster Loan (EIDL) Relief Act, to delay interest accumulation on COVID disaster loans.
“Small businesses are the lifeblood of neighborhoods across the nation,” said Rep. Strickland. “My legislation prioritizes their needs as cornerstones in their communities because a post-pandemic return to normal must include helping our small business owners.”
Strickland’s bill puts into effect the interest rates on the federal share of an eligible COVID-19 EIDL loan at zero percent for eligible borrowers for 12 months. The deferral in interest would afford relief for small businesses hardest hit as they overcome and recover from the pandemic.
In addition to delaying interest for a year, the EIDL Relief Act would drop required payments for eligible borrowers to at least 10% of their monthly payment amount (with a $25 minimum) to qualify for the interest rate adjustment. Small businesses eligible for this would be COVID-19 EIDL loan borrowers who are experiencing short-term financial challenges as determined by SBA.
Strickland has been a staunch advocate for small businesses in Congress, leading a bipartisan letter co-signed by 70 of her colleagues to the Small Business Administration last year demanding accountability on inadequate service and communications from the SBA regarding COVID-19 EIDL loans.
The EIDL Relief Act is co-sponsored by Reps. Yvette Clarke (NY-09), Raul Grijalva (AZ-07), Andre Carson (IN-07), and Donald Payne (NJ-10).
The delay in interest would provide much-needed relief for small businesses as they recover from the pandemic.
“The EIDL Relief Act is an important step towards providing support to small businesses, particularly those owned by Black entrepreneurs who have been disproportionately impacted by the pandemic,” said Strickland. “My legislation is a continuation of my efforts to support small businesses and ensure they have the resources and assistance they need to recover from the economic impacts of the pandemic.”
The EIDL Relief Act has gained the support of several of Rep. Strickland’s colleagues, including Reps. Yvette Clarke (NY-09), Raul Grijalva (AZ-07), Andre Carson (IN-07), and Donald Payne (NJ-10).
“This bipartisan effort aims to provide critical relief to small businesses, particularly those owned by people of color and women, who have been disproportionately impacted by the pandemic,” said Rep. Clarke.
