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| AP Photo/Patrick Semansky, File |
In 2020 and 2021, COVID-19 Economic Injury Disaster Loans were a lifeline for small businesses.
But now some small businesses are having trouble paying them off. 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.
Dwayne Thomas, owner of events lighting company Greenlight Creative in Portland, Oregon, got a roughly $500,000 EIDL loan in 2020, when all events shut down, crippling his businesses.
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 otherwise it’s a 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.”
The SBA awarded about 4 million loans worth $380 billion through the program. More than $300 billion was outstanding as of late 2023. Unlike some other pandemic aid, these loans are not forgivable and must be repaid. --->READ MORE HERE
A couple who had Qantas flights booked during Melbourne’s fifth lockdown are furious after they were told they were ineligible for a refund because they were a “no show.”
The healthcare worker and his partner had originally booked Qantas flights through travel giant Expedia to fly to Darwin for a holiday on Sunday, July 18, 2021.
Noticing the number of COVID cases quickly rising the Wednesday before, Mr. McGregor moved their flights forward to fly out at 7.30 p.m. on Friday, July 16 – hoping they would still be able to get out before another strict shut down.
Then on Thursday, July 15, Victorian Premier Daniel Andrew’s announced the state would go into a fifth lockdown from 11.59 p.m. that night.
“How could I fly if the state of Victoria was in lockdown and I couldn’t move more than 5km from the house?” Kieran McGregor told news.com.au.
Three years on, Mr. McGregor had still been stuck between Expedia, which blamed the airline for not issuing a refund, and Qantas, which said the funds remained with the travel agency.
The companies finally confirmed a refund this week, only after news.com.au inquired about the case.
Mr. McGregor told news.com.au he was “incredulous” when he received the message to inform him he was ineligible for a refund.
In an exchange on X last year, formerly Twitter, Expedia said: “We just got off the phone with the airline, and as per advised, the ticket shows suspended on their end due to a no show.
“Your ticket is no (sic) eligible for a refund, and has no value as per the airline. We apologize for the inconvenience.”
Taking the issue up with Qantas, Mr. McGregor was given the runaround.
A message from the airline claimed “the funds will still remain with the agency that you’ve booked with” and to contact them directly for a refund.
Mr. McGregor told news.com.au the ordeal was “utterly disgraceful” given his $1,683.62 claim would be a drop in the ocean for a company that made “billions of dollars in profit.” --->READ MORE HEREFollow links below to relevant/related stories and resources:
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