Peterson Leads Bipartisan Letter Requesting Lower Rates for SBA Loans

(Washington, D.C) - Today, Congressman Collin Peterson lead a bipartisan coalition of 44 Representatives in sending a letter to Small Business Administration (SBA) Administrator Jovita Carranza requesting that the SBA drastically reduce the interest rate tied to the Economic Injury Disaster Loans (EIDL) for small businesses and non-profits.

"Our small businesses have been hit hard by the economic toll of the coronavirus disaster," said Peterson. "I have heard from businesses and nonprofits of all kinds who are struggling to get by and that is why I’m working to get the SBA to lower the interest rates on the emergency loans they offer."

The importance of emergency SBA loans for businesses and nonprofits is one reason that this letter is supported by the following associations:

• National Restaurant Association

• U.S. Chamber of Commerce

• National Federatioan of Independent Businesses (NFIB)

• National Association of Manufacturers (NAM)

• American Hotel & Lodging Association (AHLA)

• National Association of Development Organizations (NADO)

• National Council of Nonprofits

Joining Peterson on the letter are Reps. Eleanor Holmes Norton (D.C.), Peter A. DeFazio (Ore,), Vicente Gonzalez (Tex.), André Carson (Ind.), Tulsi Gabbard (Hawaii), Chip Roy (Tex.), Gregory W. Meeks (N.Y.), Joaquin Castro (N.Y.), Ben McAdams (Utah), Raja Krishnamoorthi (Ill.), Harley Rouda (Calif.), Anthony Brindisi (N.Y.), Roger Marshall, M.D. (Kans.), Anthony G. Brown (Md.), Ruben Gallego (Ariz.), Angie Craig (Minn.), Al Lawson (Fla.), Donald M. Payne, Jr. (N.J.), David Scott (Ga.), Grace F. Napolitano (Calif.), Ted Deutch (Fla.), James P. McGovern (Mass.), Denver Riggleman (Va.), Grace Meng (N.Y.), Gregorio Kilili Camacho Sablan (MP), Derek Kilmer (Wash.), Jackie Speier (Calif.), Rodney Davis (Ill.), Lucy McBath (Ga.), Lance Gooden (Tex.), Albio Sires (N.J.), Rick Crawford (Ark.), Ed Case (Hawaii), Daniel W. Lipinski (Ill.), Kathleen M. Rice (N.Y.), Eddie Bernice Johnson (Tex.), Cindy Axne (Iowa), Thomas R. Suozzi (N.Y.), Xochitl Torres Small (N.M.), Chris Pappas (N.H.), Jan Schakowsky (Ill.), Darren Soto (Fla.), Cheri Bustos (Ill), and Elaine G. Luria (Va.).

The letter is below:

The Honorable Jovita Carranza

Administrator

U.S. Small Business Administration

409 3rd St, SW

Washington DC 20416

Re: Economic Injury Disaster Loans (EIDL)

Dear Administrator Carranza,

I write today to ask that the U.S. Small Business Administration take swift action to drastically reduce the interest rate tied to the Economic Injury Disaster Loans (EIDL) for our small businesses and non-profits.

At a time when small businesses are facing extreme stress and uncertainty for the future, it is unacceptable that SBA is charging small businesses 3.75% and non-profits 2.75%. This is especially problematic as the central bank has slashed rates to 0%.

Across the country Americans have been asked to stay home and businesses have closed at the government's request for the safety and greater good of our communities and our country. During unprecedented and uncertain times lowering disaster loan interest rates is a prudent action that can be taken full knowing that this pandemic will have economic ripple effects for years to come.

Taking this action could mean the difference between successfully navigating the challenges ahead and complete economic collapse, especially in rural communities. Given the urgency of this matter, I encourage you to take this action immediately.

Sincerely,