Bill Overview
Title: To direct the Administer of the Small Business Administration to consider certain applications under certain EIDL COVID-19 relief programs, and for other purposes.
Description: This bill requires the Small Business Administration to continue considering applications for certain economic injury disaster loans submitted prior to the application deadline for such loans until (1) all available funding for the loans is expended or (2) all eligible applicants have received assistance.
Sponsors: Rep. Smith, Christopher H. [R-NJ-4]
Target Audience
Population: Small Business Owners Awaiting EIDL Consideration
Estimated Size: 1000000
- The bill focuses on Economic Injury Disaster Loans (EIDL), which are intended for small businesses that experienced economic harm due to COVID-19.
- EIDL loans were available to small businesses, small agricultural cooperatives, and certain private non-profits that are affected by the pandemic.
- Eligible applicants for EIDL under this bill would include those who have already submitted their applications prior to the deadline but are still waiting for consideration.
- Small businesses make up a significant portion of the global business landscape, and the COVID-19 pandemic affected millions of them worldwide.
Reasoning
- The target population primarily consists of small business owners who applied for Economic Injury Disaster Loans before the deadline but have not yet been considered. The policy aims to offer financial assistance to those in need; however, due to budget constraints, not all applicants may receive support immediately.
- Given the limited budget of $3 billion in the first year, the funds may not cover all pending applications, which could result in varying degrees of success among applicants—some may receive full funding, partial, or none initially depending on the severity of economic injury and the order of application.
- Considering the $8.25 billion budget over 10 years, there is a provision for sustained relief as more applications are considered over time, which could improve long-term wellbeing for those eventually receiving the loans.
- Given the scale of small businesses in the U.S.—approximately 31 million—only about a million are targeted by this policy. Hence, a large percentage of businesses might remain unaffected, and their perspective is also important in understanding the overall impact.
Simulated Interviews
Owner of a small restaurant (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I think the policy is crucial because many small businesses, like mine, are still struggling with past losses. I really hope more funds will be made available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Owner of a small construction business (Houston, TX)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- This policy is a ray of hope. Till now, I was skeptical about whether my application will ever get considered, given the backlog.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 6 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Freelance photographer (San Francisco, CA)
Age: 33 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I applied to get some relief, but cynicism about bureaucratic delays made me believe I won't get the help needed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Owner of a local retail store (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I didn't apply but knowing more businesses will get funded means a stronger local economy, which eventually affects us all positively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Owner of an independent bookstore (Chicago, IL)
Age: 27 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This could be the difference between shutting down or staying open; guessing which way it will go makes sleep difficult.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 4 |
| Year 3 | 8 | 3 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 6 | 3 |
Owner of a wellness studio (Los Angeles, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- Knowing that application will still be considered is a relief. But waiting for the actual funds is the crucial part.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Owner of a logistics company (Phoenix, AZ)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- It's good to know that no application gets ignored. A push like this could mean surviving the next economic shock.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 3 |
Non-profit organization manager (Seattle, WA)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Seeing this funding extended provides security and a way to address our long-term operational issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Owner of a digital marketing agency (Atlanta, GA)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 13/20
Statement of Opinion:
- We partially bounced back but not fully. If the application gets approved, it will reduce pressure consistently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
App developer (Austin, TX)
Age: 22 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- This decision probably favors existing businesses. Being new, I expect other initiatives will arise for people like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $3000000000 (Low: $2500000000, High: $3500000000)
Year 2: $2000000000 (Low: $1500000000, High: $2500000000)
Year 3: $1000000000 (Low: $500000000, High: $1500000000)
Year 5: $500000000 (Low: $0, High: $1000000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Potential administrative burdens on the SBA for processing and disbursing loans.
- Impact on already allocated pandemic relief funds and the federal budget.
- Economic stabilization vs. the risk of defaults from additional loans.