State of the EIDL

As many Small Businesses along Main Street Alliance are starting to get back into a sense of normalcy, they still need financial assistance to fully recover from the setbacks and disruptions caused by COVID-19. The U.S Small Business Administration (SBA) Launched its COVID-19 Economic Injury Disaster Loan (EIDL) program to provide funding to help small businesses recover from the economic impacts of the pandemic. This program was designed with the goal to help disadvantaged groups by distributing the loans evenly throughout minority communities. A big issue that we are now seeing is that many small business owners are facing a challenge in paying back these unforgivable loans, as their profits are not reaching the same levels as they did pre-COVID. 

Main Street Alliance and its members believe that small businesses thrive in places where people can live, work, and prosper. Many small business owners across the country have experienced some sort of challenge in obtaining financial relief during this time, and those who cannot fully repay their loans are at risk of falling into further debt. We are now calling on the federal government to take further action that allows small businesses more time and sensible programs to protect their businesses to strengthen our declining economy.

What do our members think of this?

“We took the EIDL loans as a stop-gap measure thinking that the federal government was going to take further action both scientifically and financially to support small businesses. Instead, they drastically underfunded the Restaurant Revitalization Fund, gave out grants and forgivable loans to companies that didn’t exist or weren’t eligible for them, and left actual small businesses high and dry with massive loans and no actual support. The process was slow and nonsensical, and the pandemic has dragged on for too long. 

Now, almost three years in, our business has not come back to normal sales, costs are out of control due to inflation, and small businesses are facing huge monthly payments in an economy that hasn’t recovered.  In the absence of RRF replenishment, EIDL loan forgiveness would be incredibly powerful in boosting the economy and keeping struggling businesses from collapsing. Going into the midterms with small businesses failing left and right is not a good look, and the fallout from that will carry into the 2024 election as well. With the pandemic dragging on and the economy struggling, some kind of relief (FAST!)  for small businesses is vital.” 

Becky Cooper, Wisconsin

“How do we ask the question about SBA loans being repaid for small businesses that are not back to pre-pandemic levels, it has been discussed as a great concern as of late since they are starting to require monthly payments and if you can’t make your payments they can take asset’s that you may have or even your business?--

I think it's fine to uplift a general concern that he went through a lot of hoops (Like many other SBOs of color) applying for the loan, has started a couple other businesses since then to get his income back to what it was, have not been able to, and a concern that not being able to make those payments would set him further back”

KB Brown, Minnesota

Take Action!

Share your story!

Take some time to talk to your MSA organizer on the ground to discuss your experience in accessing these funds and your experience in navigating this EIDL program. You can also record a 1 minute video talking about your experience to be highlighted on our website.