Monday, January 29, 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
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!
Monday, January 15, 2024
How the FBI is Combating COVID-19 Related Fraud
The FBI combating COVID related fraud, including PPP & EIDL loans.
The article written by an FBI agent can be found at:
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!
Thursday, January 11, 2024
Chapter 11 Bankruptcy Filings Rose 72% in 2023
Chapter 11 Bankruptcy Filings Rose 72% in 2023
CFO is reporting that Chapter 11 bankruptcy filings rose 72% in 2023. The story can be found at https://www.cfo.com/news/chapter-11-bankruptcy-reorganization-2023-Epiq-subchapter-V-healthcare-Peloton-effect/704173/
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!
Friday, January 05, 2024
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS
Many people are contacting us, asking if wrongfully applying for or misusing SBA EIDL funds constitutes a crime or could subject them to civil or criminal penalties.
The answer depends on the "facts and circumstances" of each case.
The first fact to consider is whether the action was a mistake (negligent) or willful. Negligent actions are not criminal, but willful actions may be.
Second, what is the dollar amount involved? Was it a misapplication of $25,000.00, $50,000.00, or $1,000,000.00? The SBA and Department of Justice are busy organizations that tend to focus on larger dollar amounts when pursuing criminal actions.
Third, were the involved parties part of a criminal gang or ring with prior criminal actions or convictions or first offenders.
Fourth, reported criminal cases often involve situations where loans were obtained with no legitimate business purpose. Instead, the funds were acquired through false representations to the SBA, with the intent to steal from or defraud the government.
Consequently, wrongfully applying for or misusing SBA EIDL loans can lead to civil or criminal penalties.
The SBA loan documents signed by all borrowers say that whoever wrongfully misapplies SBA loans shall be civilly liable to the Administrator in an amount equal to one-and-one half times the original principal amount of the loan under 15 U.S.C. 636(b).
Second in addition, any false statement or misrepresentation to the SBA may result in criminal, civil or administrative sanctions including, but not limited to: 1) fines, imprisonment or both, under 15 U.S.C. 645, 18 U.S.C. 1001, 18 U.S.C. 1014, 18 U.S.C. 1040, 18 U.S.C. 3571, and any other applicable laws; 2) treble damages and civil penalties under the False Claims Act, 31 U.S.C. 3729; 3) double damages and civil penalties under the Program Fraud Civil Remedies Act, 31 U.S.C. 3802; and 4) suspension and/or debarment from all Federal procurement and non-procurement transactions.
Statutory fines may increase if amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
Third,if one intentionally misuse the funds, it could be considered fraud, wire fraud, money laundering, false statements, or theft of government funds. which are criminal offenses.
Fraudulent use of SBA loan proceeds may lead to fines, penalties, and potentially imprisonment.
Fourth, The dischargeability of SBA EIDL loans in Chapter 7 Bankruptcy is governed by bankruptcy law section 11 U.S.C.A. § 523(a)(2)(B). That section provides for non-dischargeability of debts obtained by false representation or fraud.
Clients with questions about defaulted SBA loans and civil or criminal penalties, or discharging those loans in Bankruptcy should contact Jim Shenwick, Esq jshenwick@gmail.com 917 363 3391
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!
---
Other SBA EIDL Blog Posts by Jim Shenwick, Esq.
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
Subscribe to:
Posts (Atom)
