Davids, Salazar Introduce Bipartisan Bill to Extend Time for Small Business to Repay Relief Loans
Representative Sharice David (KS-03) and Congresswoman María Elvira Salazar (FL-27) have introduced the Economic Injury Disaster Loan Relief Act, a bipartisan bill that extends the deadline for small businesses to repay Economic Injury Disaster Loan (EIDL) loans for one year. The extension will provide additional relief for businesses as the COVID-19 pandemic remains ongoing.
"For almost one year now, the coronavirus pandemic has devastated our communities and especially the futures of our small businesses. Even with the vaccine rollout speeding up, the pandemic is far from over, and our small businesses need all the help they can get to make it through. I'm proud to introduce this legislation with Rep. Salazar to delay repayment on EIDL loans for the small businesses that form the backbone of our community and economy," said Representative Davids.
"Many of our local job creators applied for EIDL loans at the beginning of the outbreak and yet the pandemic has continued to take a devastating toll on our small businesses," said Congresswoman Salazar. "We cannot force our struggling small businesses to repay these loans at a time when many are barely able to keep their doors open. I am proud to introduce this bipartisan bill with my colleague Rep. Sharice Davids that will provide our local job creators with an extra year before they have to make their first loan repayments."
Currently, EIDL loan recipients must start repaying their loans after one year of receiving them. For many loan recipients, the first payments are coming due March and April of 2021, even though the coronavirus is still raging in communities across the country. The Economic Injury Disaster Loan Relief Act will extend the due dates for loan repayments by an additional year, meaning that small business owners who took out a loan during the height of the COVID-19 pandemic do not have to start making payments until at least 2022.