SBA EIDL Loan Successfully Recalled from Treasury 4/27/26

 

SBA EIDL Loan Successfully Recalled from Treasury 4/27/26

Jim Shenwick, Esq. is pleased to announce a significant victory on behalf of a client: the successful recall of a defaulted SBA EIDL loan from the U.S. Department of Treasury back to the SBA.

The loan in question had an outstanding balance of $212,000 and was personally guaranteed by the borrower. By securing the recall, the client avoided a substantial 30% penalty and all associated costs that come with Treasury-level collection.

How We Achieved This Result

The client had a compelling set of facts working in their favor. They were able to demonstrate that they never received the required 60-Day Default Notice from the SBA, and they had a documented medical condition that further supported their case.

Upon being retained, we moved quickly. Under our guidance, the client sent targeted correspondence — both emails and formal letters — directly to the Treasury and the SBA. The client also reached out to their Congressional representative, who contacted the SBA on their behalf.

Last Friday, the SBA notified the client by email that, following a thorough review of the file, the loan had been recalled from Treasury back to the SBA. The client may now resume making payments directly to the SBA, avoiding the severe consequences of Treasury-level default.

The client was thrilled — and so were we.

What This Means for Other Borrowers

These cases are challenging to pursue and require the right combination of facts, documentation, and strategy. However, this outcome demonstrates that a recall from Treasury to the SBA is achievable with the proper approach.

If you have an SBA EIDL loan that has been referred to the Department of Treasury, don't wait. Contact us today to discuss your options.

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

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