Letter to Jovita Carranza, Administrator for the Small Business Administration - Matsui Calls on Small Business Administration to Swiftly Get Crucial Funding to Small Businesses

Letter

Dear Administrator Carranza,

I write today to ask that swift action be taken to coordinate efforts between the U.S. Small Business Administration (SBA), and state and local officials in California, to distribute Economic Injury Disaster Loan funding. Today's declaration from the SBA frees up critical resources for small businesses in California struggling with the effects of the Coronavirus (COVID-19) outbreak. Given the uncertainty around the length and severity of this public health crisis, clear, streamlined funding application guidance must be provided to ensure struggling businesses can access these loans as soon as possible.

Congress recently passed the Coronavirus Preparedness and Response Supplemental Appropriations Act which provides new funding for the SBA to offer low-interest federal disaster loans for small businesses suffering significant economic hardship from COVID-19. SBA's Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to offset the loss of revenue they may be experiencing. For small businesses struggling to maintain operations, these loans are critical to provide stability and help prevent lasting damage while they take responsible measures to limit the spread of COVID-19.

I have heard directly from businesses in my District that are already struggling to pay employees, suffering a significant loss in customers, and preparing for the prospect of shutting down for weeks or months. These businesses have an immediate need for support that can be offered with Economic Injury Disaster Loans. It is important that these resources be made easily available to businesses and that consideration of funding requests are expedited due to the urgency of this matter. I encourage you to work closely with SBA regional offices in California to ensure applications are processed and funds distributed in a timely manner.

I am committed to working with you, Governor Newsom, and the Sacramento community to ensure there is a coordinated response to this outbreak between federal, state, and local officials.

Source