SBA
DOES NOT ALLOW EIDL LOANS TO BE COMPROMISED THREW AN OFFER IN COMPROMISE
Many
clients have contacted our law firm seeking assistance in settling their
outstanding SBA EIDL loans through an offer in compromise (OIC).
Unfortunately,
the SBA's current position is that they do not allow EIDL loans to be settled
through an OIC. While the OIC program is available for other types of SBA
loans, EIDLs remain excluded from this option.
The
options to settle SBA loans are provided below.
1.
Hardship Accommodation Plan. The hardship accommodation plan lowers
monthly payments for 6 months, and then payments increase over a time.
2.
Loan modification: Borrowers can request modified payment terms or extended
repayment periods or negotiated repayment plans with the SBA.
3.
Hardship deferment: Borrowers experiencing economic challenges may be eligible
for temporary payment deferrals.
4
Full Loan Repayment from business or personal assets, if possible.
5
Liquidation of Business Assets: Close the business or sell business assets and
pay off or pay down the SBA EIDL loan with the sales proceeds. The SBA loan
documents require that any business assets sold and subject to an SBA loan must
be paid to the SBA at the time of sale. However, the borrower will remain
liable for any deficiency owing after the paydown.
6
Refinancing your existing SBAloan with a private lender and use the loan
proceeds to pay down or payoff the SBA.
7
File for bankruptcy. If the SBA EIDL loan exceeded $200,000 and an individual
or entity guaranteed the loan, both the SBA borrower and guarantor may need to
file for bankruptcy to discharge the SBA loan
8
Default on the SBA loan and engage in Asset Protection Planning in case of
legal action by the SBA or the Treasury Offset Program.
Clients or their advisers with outstanding SBA EIDL loans who have questions about what they should do can contact Jim Shenwick, Esq to discuss their situation.
Jim
Shenwick/Shenwick & Associates
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
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help individuals & businesses with too much debt!
