EIDL loans were designed to help small businesses stay afloat during the COVID-19 pandemic. Most of these loans have a 30-year term with a 3.5% interest rate. With lower interest rates than typical loans, the loans were provided for working capital and other normal operating expenses.
Thomas says his business would not have survived without the loan. But, at 64, his plan to sell his business in a few years and retire has been scuttled, since the 30-year loan has left his business saddled with debt, even though it’s an otherwise healthy business that turns a profit.
“We’re as successful as we’ve ever been,” Thomas said. “It’s just that we have this huge thing hanging over us at all times. It is not going away on its own.”