Dwayne Thomas, owner of Greenlight Creative, stated, 'We’re as successful as we’ve ever been. It’s just that we have this huge thing hanging over us at all times. It is not going away on its own.' This underscores the burden of EIDL debt on thriving businesses.
The Federal Reserve Banks survey found that firms with outstanding EIDL debt reported higher debt levels, challenges in making debt payments, and a lack of profitability, highlighting the ongoing impact of these loans.
While EIDL loans provided critical support during the pandemic, the 30-year term has left many businesses, like Thomas’s, in a prolonged debt situation that complicates future business plans.
With over $300 billion in outstanding EIDL loans by late 2023, the lack of forgiveness for these loans is creating significant barriers for small businesses seeking additional credit.
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