r/EIDL

Been lurking here for a while, knowing my time would eventually come and it finally has.

Took out a $150K loan on a family owned distribution company, there is no PG due to the size. Company has been losing money for years and also issues with landlord. Landlord finally said we could get out of our lease. So we need to shut down, no other creditors, just the EIDL/SBA. What do I do?

1. Just stop paying and let them contact me? file BK (which seems silly for just one creditor)? 2. Dissolve the company and send paperwork to the SBA?

2. What about the inventory? It will cost more to move and store it than it's worth at this point.

3. There are minority stakeholders who have had no involvement in the business (since family owned), will this show up on their credit or impact their ability to borrow in the future?

Any thoughts are appreciated!

I have eidl of 740k with personal guarantee. Business closed. No payments made. First payment says due 11/2022. Im assuming that when the time countdown starts for statue of limitations start. Should I try to file BANKRUPTCY to get personal guarantee discharged or wait 2.5 years for statue of limitations expire?

This was the response from one laywer. Is he correct?

Hi there, As someone who works at the intersection of tax, bankruptcy, and forensic accounting, and also wrote a book back in 2020 about the Covid programs and potential outcomes relating to fraud, I see a few issues here, and the bankruptcy question is actually the smaller of the problems on these facts. Chapter 7 is technically available, but the SBA could survive discharge. EIDL rules limit the proceeds to working capital and business operating expenses, so using the money for personal living costs and a car directly contradicts the certifications you signed at application, which supplies the fraud elements the SBA needs to keep the guaranty alive after bankruptcy, and when a debt arises from fraud, all of it survives the bankruptcy, not just the loan principal. The bigger problem is criminal exposure. COVID EIDL was issued under a federally declared disaster, which can carry penalties up to 30 years, plus possible false statements on the loan application you signed. The fact pattern you describe is squarely within the template DOJ and SBA Office of Inspector General have been using for COVID EIDL prosecutions since 2020. Here's the issue: Filing Chapter 7 requires you to disclose the loan and how you spent it under penalty of perjury, which creates a documented admission prosecutors can use. Engage white-collar criminal defense counsel first, bankruptcy counsel second. Best of Luck

Plus other collection company nonsense. Not much incentive to get this money paid once you are this point. Just don't get why the SBA doesn't work with everyone and get this taken care of.

I see there is 6 month hardship being offered. There are a few questions to answer. Are there certain answers that will deny you? Business being opened or not, cash flow problem. Might have been another question too.

Has anyone had their loan sent to treasury under $200k?

Anyone have experience with this situation?

I sent an email since there are no live agents. I asked how much I needed to pay to get back within the 90 days. I hope I receive an answer and I hope it is something we can do. I wish I had never taken this loan. I own 50 percent of the company- I am the one that signed for the loan HOWEVER on the loan now it shows my two partners signing the electronic signatures. That never happened and I wonder why that is part of our file now. Anyone else had this happen as well I’m sorry I know I’m all over the place just nervous today thank you for any information you can provide to me.

I just received a message in my portal saying if I can't make payments (I am 1 month past due) they will consider another hardship request and a new repayment plan. I recently completed a hardship and have continued to pay 50% for the last few months. Anyone else receive this message?

I’m going to file for bankruptcy. I have an SBA loan but I’m filing personally (SBA loan shows up on my personal credit report). I have 2 credit cards that are in the business name. Those 2 credit cards do not show up on my personal credit report. Does anyone know if I’ll have to or need to include those 2 credit cards in the bankruptcy? I really don’t want to include them.

Hi all,
I have a very high eidl loan from the SBA that went into default with the treasury. We didn’t even realize it until they took my tax refund and garnished wages.
There’s 3 personal guarantees on it but we can’t pay it. The business already closed down in 2024. Plus they already added the 30% fees.

Any advice. Bankruptcy seems to be the only option but my husband is a high earner and this loan is from before we were married. I don’t want the government to take anything from him bc of this.

mine was 11400, my business partner died, he sold the jobs, did the marketing, set it all up then i did the labor. After he died, no more work this was a second job. i was laid off from primary job 4/2022, -forced to get a shit job with pathetic pay- $100K income reduction all my obligations had to be ignored...thar said im back on feet, and want to start paying the EIDL charge off, my question is: If i pay the 30 past due months off, is there any way to get it reinstated or is it too late?

The third-party debt collectors (Pioneer Credit Recovery,) notice shows my balance being 17844, on the middle-left section it indicates that the collection is because i had a small business loan, acct# and has the wrong account. #, ..if their first communication has errors, not a good sign..

i was hoping to pay the past day asap and somehow be removed from the CAIVRs list.. wouldn't mind reinstatement back to SBA as well

am i dreaming? or is there even a small percentage that this could happen

Please share, anyone been successful? This would be a help for a lot of people!

I've submitted a dispute and it's been over 1 month. No response from ANYONE

If you have an EIDL under 200k with no personal guarantee and end up defaulting can they take 15% of your social security even though the debt belongs to the corp and not you personally? Is it better to legally dissolve your corp or continue doing business?

Good rec for NC bankruptcy attorney?? Or maybe even VA…. Business were VA. Own a rental in VA. Own home in NC! Eidl for Llc original $425k, gym business, so you can imagine how that has gone. And $150k as sole prop of franchise sales mobile dog grooming, that had so many supply chain issues in 2021-2022, we couldn’t actually sell…. Either way. I myself went back to school, high earner, need a good attorney!!!! Thanks in advance!!!

"SBA just sent $22B in suspected pandemic-era fraud to Treasury for collection. But

u/VP

's Task Force to Eliminate Fraud is not just about holding criminals accountable - it's about implementing safeguards to ensure they can never defraud taxpayers again."

It has taken me forever to actually get a copy of my contract. This one was under a subset of my larger corporation as the two businesses operations are very different, separate accounting. I have finally gotten my contract off the SBA site for the longest time, it was not there. And I’m looking at it. It literally says closing document without PG. And then there’s nowhere I signed the personal guarantee tour like I did for a much larger loan I did with my LLC. So the question is, for those that were sole proprietor did you actually have to sign a personal guarantee or you were just assuming because it’s sole proprietor. Or am I missing something??

Family has a disaster loan roughly around $79k. No personal guarantee except the verbiage states something along the lines of whoever signs is liable (my aunt is the owner and signed) but the partnership is the borrower.

With the business closing, how should we approach SBA? We don't have the capability to make any more payments as the business never recovered back to normal levels after COVID. Do we just let it default? Or reach out to SBA for paperwork? Bankruptcy? Not much in assets except a few thousand in account and some desk/pedicure chairs.

If you were in a familiar situation or have any guidance, that would be appreciated!