VISIT OUR GOOGLE MY BUSINESS SITE

Sunday, March 10, 2024

U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loans


U.S. Seeks to Collect on Up to $20 Billion in Delinquent Covid Loans

The Wall Street Journal is reporting in an article dated March 7, 2024 that the U.S. is seeking to collect $20 Billion in  delinquent SBA EIDL Covid loans from small businesses and not for profit entities. The article can be found at https://www.wsj.com/business/u-s-seeks-to-collect-on-up-to-20-billion-in-delinquent-covid-loans-96dd36c6?mod=business_lead_story

The SBA announced that  delinquent Covid EIDL loans with balances of $100,000 or less will be sent to the Treasury Department for collection.

The referral is sent to Treasury Direct, which can seize government benefits such as portions of Social Security payments and tax refunds.

Additionally, in our experience Treasury Direct can and will assess a 30% penalty on the unpaid balance of defaulted SBA EIDL loans (a point not covered in the article).

Moreover, borrowers who default may have to recognize Cancellation of Debt income, which is ordinary income under section 108 of the Internal Revenue Code (another point not covered in the article).

Many small businesses never intended to repay the loans, hoping they would be forgiven like PPP loans; however, this is not the case.

Borrowers with questions about defaulted SBA EIDL loans should contact Jim Shenwick, Esq. Jim has an LLM in Taxation from NYU law school and he is familiar with the Cancellation of Debt tax issues. 


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!

---

Jim Shenwick, Esq Blog SBA EIDL Posts:

SBA EIDL Loan Charge Offs

https://shenwick.blogspot.com/2024/02/sba-eidl-loan-charge-offs.html


SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS

https://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-penalties.html

Defaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loans

https://shenwick.blogspot.com/2023/12/defaulted-sba-eidl-loans-in-reversal-us.html


SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023

https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute-of.html


SBA EIDL Penalties if an SBA EIDL Loan is Not Repaid

https://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loan-is.html

Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html


SBA EIDL HARDSHIP PROGRAM

https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html


Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code

https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html


Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!

https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html

EIDL LOAN WORKOUTS AND BANKRUPTCY    https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html


EIDL Loan Default Questions & Answers

https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html


EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html


EIDL Defaulted Loans

https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html


New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html


EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM

https://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html


PPP & EIDL Fraud

https://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html


Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loans

https://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html

Thursday, March 07, 2024

Small-business owners carry bigger debt loads than they did pre-pandemic



Small-business owners carry bigger debt loads than they did pre-pandemic  

 Biz Journals is reporting that Small Business owners are now carrying bigger debt loads that they did pre-pandemic. 

The increased debt load combined with higher interest rates is proving to be a "toxic mix." At Shenwick & Associates, we are witnessing a significant rise in business bankruptcies, personal bankruptcy filings, and workouts.

The Biz Journal article can be found athttps://www.bizjournals.com/orlando/news/2024/03/07/small-business-debt-loans-federal-reserve-interest.html


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!

Saturday, February 17, 2024

Charge Off of SBA EIDL Loans




Many clients who have defaulted on SBA loans receive a letter from the SBA indicating that their loan has been charged off. They ask us if this means the loan has been forgiven and does not need to be paid back.

“Charging off” is an accounting concept that  allows the SBA to remove the loan from its books and records  as an asset, but the SBA can still try to collect the debt.

Simply stated, charging off or charged off does not mean that a loan is forgiven!

Even though the loan is charged off, the borrower still owes the money and the SBA can continue collection efforts.

Collection methods include lawsuits, foreclosure on assets, garnishing wages, reporting the default to Treasury Direct (so that the Government can seize tax refunds) and reporting the default to credit bureaus. 

So in summary, a charge off is an accounting procedure but does not relieve the borrower of repayment responsibility. 

The SBA treats the charge off as a default and it will pursue further collection even after charge off.

Clients or their advisors with questions about defaulted SBA loans should contact Jim Shenwick, Esq.  917 363 3391  jshenwick@gmail.com

Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!





Wednesday, February 14, 2024

Can I Get a Personal Loan After Bankruptcy? Marketwatch



MarketWatch offers a helpful article on obtaining credit after filing for personal bankruptcy. The article can be found at  https://www.marketwatch.com/guides/personal-loans/personal-loan-after-bankruptcy/


In our experience, representing hundreds of individuals who have filed for personal bankruptcy, clients are generally able to obtain loans or credit 1.5 to 2 years after receiving their Bankruptcy Discharge.
After a bankruptcy filing, we advise clients to save as much money as possible, obtain a secured credit card, and lease a reasonably priced car.


The goal is to demonstrate responsible credit usage, which will then enable you to obtain credit.


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link below to schedule a telephone call with me.

 https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt! 

Monday, February 12, 2024

SBA EIDL Loan Charge Offs


The debanked website is reporting that Covid SBA EIDL loan charge offs increased by $52 Billion in 2023.   

Those charge offs equal 17.2% of the unpaid principal balance of SBA outstanding EIDL loans. 

The story can be found at https://debanked.com/2024/02/covid-eidl-charge-offs-explode-increase-by-more-than-51-billion-in-fy-2023/

This report is unsurprising, as a rough estimate indicates that 75 to 80% of our clients have defaulted or are considering defaulting on their SBA EIDL loans.

SBA EIDL loan defaults raise Debtor/Creditor, Bankruptcy, Tax and Personal guaranty issues. 

SBA EIDL loan defaults are also reported to Treasury Direct (IRS) and a 30% penalty is added to the balance due.

The worst action a borrower in default on an SBA loan can take is to ignore the situation.

As one famous lawyer said, prayer is not a legal strategy!

At Shenwick & Associates, we have developed techniques & strategies to minimize tax and debtor/creditor issues involving an SBA EIDL default.

To speak to Jim Shenwick, Esq about an SBA EIDL loan default you can call him at 917-363-3391 or email him at jshenwick@gmail.com

Please click the link to schedule a telephone call with Jim

https://calendly.com/james-shenwick/15min

---

James Shenwick, Esq SBA EIDL Blog Posts:

SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS

https://shenwick.blogspot.com/2024/01/sba-eidl-loans-civil-criminal-penalties.html

Defaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loans

https://shenwick.blogspot.com/2023/12/defaulted-sba-eidl-loans-in-reversal-us.html


SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023

https://shenwick.blogspot.com/2023/12/sba-eidl-loan-defaults-and-statute-of.html


SBA EIDL Penalties if an SBA EIDL Loan is Not Repaid

https://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loan-is.html


Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings

https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html


SBA EIDL HARDSHIP PROGRAM

https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html


Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code

https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html


Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!

https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html


EIDL LOAN WORKOUTS AND BANKRUPTCY    https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html


EIDL Loan Default Questions & Answers

https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html


EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE

https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html


EIDL Defaulted Loans

https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html


New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html

EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM

https://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html

PPP & EIDL Fraud

https://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html





Thursday, February 08, 2024

Credit card debt increases by $50B to new record high


 The Hill is reporting that credit card debt in the United States increased by $50 billion in the fourth quarter of 2023, according to recent findings from the New York Federal Reserve. 


Will this increase in credit card debt result in more personal bankruptcy filings?
The story can be found at https://thehill.com/business/4451222-credit-card-debt-increased-by-50b-new-record-high/


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt!

Tuesday, February 06, 2024

Chapter 11 Bankruptcy Filings Increase 22% Y/Y in January, Subchapter V Filings Up 43% according to monitordaily.com

 

Chapter 11 Bankruptcy Filings Increase 22% Y/Y in January, Subchapter V Filings Up 43%
https://www.monitordaily.com/news-posts/chapter-11-bankruptcy-filings-increase-22-y-y-in-january-subchapter-v-filings-up-43/

Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 
Please click the link to schedule a telephone call with me.
https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt!

Monday, January 29, 2024

James Shenwick Esq is proud to announce that he is an Avvo Rated Top Lawyer for 2024



SMALL BUSINESS ADMINISTRATION IMPLEMENTS 60-DAY GOODWILL EXCEPTION FOR PPP, EIDL LOANS


 

SMALL BUSINESS ADMINISTRATION IMPLEMENTS 60-DAY GOODWILL EXCEPTION FOR PPP, EIDL LOANS

Blackenterprise.com has a very informative article on a 60 Day Goodwill  Exception for PPL & EIDL loans and how that program operates. The article can be found at 

https://www.blackenterprise.com/sba-implements-60-day-goodwill-exception-for-ppp-eidl-loans/


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!

Tuesday, January 23, 2024

How to Get a Handle on Debt in 2024

 Next Avenue  has a helpful article on 


How to Get a Handle on Debt in 2024. The article can be found at 
https://www.nextavenue.org/how-to-get-a-handle-on-debt-in-2024/



Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.
 https://calendly.com/james-shenwick/15min
We held individuals & businesses with too much debt!
x

Thursday, January 18, 2024

SBA Announces Hardship Accomodation Plan for COVID EIDL Borrowers

  

The SBA just announced a new relief program for  PPP and COVID EIDL Borrowers.

Details and information about the new relief program can be found at 

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan/manage-your-eidl#:~:text=SBA%20is%20offering%20a%20Hardship,renew%20after%20the%20plan%20concludes.

The relief is an extension of the Hardship Accommodation Plan

The new Hardship Accommodation Plan will reduce borrowers monthly payments and help cash flow issues in the short term (6 months or longer) but it will not reduce the sum owed to the SBA or address a failed business that cannot make regular payments to the SBA. Borrowers with defaulted SBA loans should schedule a telephone call with Jim Shenwick, Esq.

The SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. Borrowers eligible for this plan may make reduced payments for a six-month period, with the option to renew after the plan concludes. Interest will continue to accrue, which may increase (or create) a balloon payment due at the end of the loan term.

Terms

Borrowers are required to pay a fixed percentage of their monthly payment amount. Payment reduction will vary based on past enrollment status.

The regular monthly payment amount will resume and be required after the six-month Hardship Accommodation period ends. 

Borrowers may be able to renew the Hardship Accommodation Plan, if necessary. The terms may vary for renewals.


Eligibility & Enrollment

Borrowers are eligible to enroll in the Hardship Accommodation Plan beginning 60 calendar days before their first payment due date. 

If your loan amount is less than or equal to $200,000:  

First-time enrollment: To enroll in the Hardship Accommodation plan, create an account or log in to the MySBA Loan Portal. Within the portal, click “Loan Summaries” in the toolbar. On the Loan Summary page, look for “Hardship Accommodation Plan” in the bottom right corner. Click “Learn more and enroll.”

Renewals: You may renew the Hardship Accommodation Plan one time through the MySBA Loan Portal. If you need renew more than once, please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line), or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements. 

If your loan amount exceeds $200,000:  

First-time enrollment and renewals: Please contact COVID-19 EIDL customer service (include Hardship Accommodation Plan in the email subject line) or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements."


Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com 

Please click the link to schedule a telephone call with me.

https://calendly.com/james-shenwick/15min

We held individuals & businesses with too much debt!