The Pandemic Ended. The Debt Didn’t.
Millions of businesses borrowed to survive COVID. Six years later, their 30-year repayment obligations raise new questions about interest, fairness, and congressional oversight.
By Mitch Goldstone, CEO of ScanMyPhotos.com
Congress is about to change hands. Democrats secured control of both the House and the Senate in the November elections. As the new Congress takes office in January, I would like to see attention given to an issue that has largely disappeared from the national conversation. Although the pandemic has ended, some small businesses may still be repaying their emergency loans in 2050. These loans were taken out when businesses were forced to close, customers disappeared, and owners had no idea when conditions would return to normal.
I’ve written about this before, including in The Hill. What interests me now is something Congress should have been examining more closely all along: What has the government actually collected from these loans, and what makes financial sense going forward? We know the original terms. COVID EIDL business loans carried 3.75% interest, with repayment periods of up to 30 years. Payments were deferred, but interest continued accumulating.
What I’d like to see is a detailed accounting of what happened afterward. How much of the original money has been repaid? How much interest has the SBA collected? How many borrowers have paid off their loans entirely? How much remains outstanding, and how much does the government realistically expect to recover?
The SBA has loan performance data. Congress should make sure the public gets answers.
A $1.2 Trillion Bailout Promise. What About Small Businesses?
President Trump pledged to provide $5,000 to every adult American citizen if Republicans retained control of Congress. Such payments would have cost approximately $1.2 trillion. By comparison, the entire COVID EIDL program initially provided approximately $378 billion in loans to small businesses—less than one-third of the proposed payments. The amount still outstanding today is lower. If Washington could consider a $1.2 trillion pledge, why can’t Congress seriously examine forgiving the remaining pandemic-related debt owed by millions of small businesses? I would like to know the actual cost of such relief, how many businesses would benefit, and how business owners might use funds they are currently repaying to the government.
There’s Another Way to Look at This
Suppose a business borrowed $100,000 during COVID and has been making payments ever since. Would it make sense to credit the interest already paid toward the original loan balance?
What about business owners who are current on their COVID EIDL payments but still struggling to invest in their companies? Congress forgave qualifying PPP loans and has long provided financial assistance to farmers and other industries. Why not consider similar relief for the mom-and-pop businesses that borrowed to survive the pandemic? Forgiving their remaining loans, or at least eliminating future interest, could free up money to hire employees, replace equipment, or expand. What would that cost taxpayers, and how much could it help local economies? Those are questions worth examining without turning everything into another political fight.
Someone who borrowed legitimately during an extraordinary national emergency deserves to have their circumstances considered when Congress reviews the program.
Congress Must Fix SBA EIDL
Two new Forbes articles on Yahoo Finance highlight the growing COVID EIDL debt crisis. The first presents real stories from small-business owners facing aggressive government collection actions, including 30% penalties, seized tax refunds, and wage garnishments. The second outlines five practical steps for borrowers experiencing financial hardship, including reviewing loan records, seeking professional assistance, and contacting Congress. Both articles are essential reading. If you are affected, contact your House representative and U.S. senators today. Explain your situation and advocate for meaningful relief. Congress needs to hear directly from the small businesses these loans were intended to support.
They Took Small Business Loans During COVID. Now The Government Is Coming To Collect
Five Tips For Small Businesses Struggling With EIDL Loans From The SBA
Why January Matters
With Democrats taking control of Congress and President Trump remaining in the White House, there’s an opportunity for hearings and a serious review of the program. Any substantial legislative changes would still require the president’s approval or a congressional override of a presidential veto. Congress has a new opportunity in January. Before lawmakers debate forgiveness, interest relief, or changing collection practices, they should put the government’s repayment figures on the table and let everyone see them.
If these loans were created to help small businesses survive an emergency, isn’t it worth finding out how they have been impacted?
Mitch Goldstone is CEO of ScanMyPhotos.com, founded in Irvine, California, in 1990. He has advocated for small businesses for decades and has written about the COVID EIDL debt issue in The Hill.
Revised on November 5, 2026.
