Summary
NEW YORK (AP) — In 2020 and 2021, COVID-19 Economic Injury Disaster Loans were a lifeline for small businesses.
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.
EIDL loans were designed to help small businesses stay afloat during the COVID-19 pandemic.
Firms with outstanding EIDL debt are also more likely to be denied when applying for additional credit.
And Janisch said the outstanding debt stops them from taking on other loans for assets that could help the business.