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 email@example.com
Please click the link to schedule a telephone call with Jim
James Shenwick, Esq SBA EIDL Blog Posts:
SBA EIDL LOANS & CIVIL & CRIMINAL PENALTIES & BANKRUPTCY FILINGS
Defaulted SBA EIDL Loans: In Reversal, U.S. to Heighten Efforts to Collect Billions in Unpaid Covid Loans
SBA EIDL Loan Defaults and the Statute of Limitations 12-24-2023
SBA EIDL Penalties if an SBA EIDL Loan is Not Repaid
Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings
SBA EIDL HARDSHIP PROGRAM
Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code
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!
EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html
EIDL Loan Default Questions & Answers
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE
EIDL Defaulted Loans
New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"
EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAM
PPP & EIDL Fraud