AmiSight 10/27: The EIDL Story Continues
I have discussed the Economic Injury Disaster Loan (EIDL) program which provided low-interest loans during the pandemic numerous times in this blog, and I thought you would be interested in this update.
The U.S. government has stopped efforts to collect around $62 billion in pandemic loans owed by small businesses (Romm, 2023). The Small Business Administration (SBA) initiated this policy change in April, citing the high cost of aggressive collection efforts may not yield significant returns. The decision has sparked a congressional investigation. While some borrowers fell behind, the SBA had already decided not to pursue those with loans under $100,000 aggressively.
The program in its original form was a lifeline in times of disaster, however the use of the program during the pandemic has proven to be a failure. The fraud is staggering, leaving the American taxpayer on the hook. I am sure this is not the end of the story. I will continue to share updates.