As Congress inches closer to passing another stimulus package, Nevada Sen. Jacky Rosen has reintroduced a bill to provide an extra $15 billion for small businesses impacted by the coronavirus pandemic.
The Ensuring Increased Disaster Loans (EIDL) for Small Businesses Act, introduced with Texas Republican Sen. John Cornyn, would send $15 billion to the EIDL Advance grant program, remove the cap on EIDL loans below $2 million and require eligible small businesses receive the full $10,000 EIDL Advance grants.
“As the economic storm caused by COVID-19 continues to threaten our small business community, it is critical that we take further steps to support small businesses in Nevada and across the country,” Rosen, a Democrat, said in a statement.
The EIDL program, approved as part of the CARES Act in March, was designed to help small businesses survive the economic impact of the ongoing pandemic through multi-year loans. The program also had an advance grant portion, which recipients were not required to repay, but funding ran out in July 2020.
Those who qualified for the EIDL Advance Grants could receive up to $10,000, though some received less. A program implemented in December would backfill that payment for some eligible recipients to the full $10,000.
Rosen and Cornyn introduced the act for the first time in July 2020, and, while the bill did not pass that year, similar language was implemented in a stimulus package passed by Congress in December.
Over 62,100 advance grants had been given out in Nevada before funding ran out, and, as of Feb. 21, 40,393 regular EIDL loans had been given out in the state, bringing the total monies sent to Nevada to $2.42 billion.
“The EIDL program has helped many businesses keep their doors open during the pandemic, and this legislation would help make sure they are able to receive the full assistance they need to stay afloat and help get our economy back on track,” Cornyn said.
The bill would also stop the federal Small Business Administration from capping the loan portion of the EIDL program at anything less than $2 million, which would be a significant increase from the current cap of $150,000 per businesses.
Rosen and Cornyn’s reintroduction of the bill comes soon after the House of Representatives passed the American Rescue Plan, a $1.9 trillion stimulus package championed by President Joe Biden. Senate Majority Leader Chuck Schumer, D-New York, has said the Senate will vote on the plan this week. It is expected to pass.