November 9, 2021

Delaney Sexton
Contributing Editor

Hot Topic Tuesday – Infrastructure Investment and Jobs Act Will Take Money From SBA Programs

The House passed the Infrastructure Investment and Jobs Act on Friday, and the Senate already passed the Act in August. President Biden is expected to sign the legislation, but part of the billions of dollars involved in the bill will come from cuts to SBA programs.

The Business Journals is reporting that part of the rescissions will come from the Economic Injury Disaster Loan Program. The EIDL program has around $350 billion in loan authority, and the program has provided almost $300 billion of those allocations to America’s small businesses. EIDL is set to expire at the end of the calendar year 2021, but the program might face a $13.5 billion cut if and when the Infrastructure Investment and Jobs Act is fully approved.

The SBA Targeted EIDL Advance will face rescissions as well. With $30 billion allocated to this grant and only $4 billion disbursed, this legislation wants to cut out $17.5 billion to fund the Act. Another $4.6 billion would be drawn from an account that was originally used for the Paycheck Protection Program, and an additional $1.3 million would come from the SBA’s economic stabilization program.

Overall, $37 billion is planned to be taken from various SBA programs. Though the Infrastructure Investment and Jobs Act will withdraw SBA funding, the Build Back Better bill will return billions of dollars to the SBA for pre-existing programs and the creation of new programs. There is talk of another bill that could come after other legislation is finished. The bill would concentrate on hard-hit industries that still need government funding like the hospitality and restaurant industries.

Source:
Andy Medici Article