While government disaster loans saved businesses from COVID-19 they also burdened survivors with debt
In 2020 and 2021, COVID-19 Economic Injury Disaster Loans were a lifeline for small businesses. But now some small businesses are having trouble paying them off. And a Small Business Credit Survey report from the 12 Federal Reserve banks shows that small businesses that haven’t paid off COVID-19 Economic Injury Disaster Loans are in worse shape than other small businesses. Dwayne Thomas, owner of events lighting company Greenlight Creative in Portland, Oregon, got a roughly $500,000 EIDL loan in 2020, when all events shut down, crippling his businesses. EIDL loans were designed to help small businesses stay afloat during...
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