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Protect Law Group can provide the path forward for recipients of the EIDL program seeking loan forgiveness. Book a consultation call with us today!
Book a Consultation CallProtect Law Group represents small business owners with more than $30,000 of debt before the Small Business Association (SBA) and the Treasury Department's Bureau of Fiscal Service. When talking about different types of small business loans, a key program to understand is the Economic Injury Disaster Loan (EIDL), which has been crucial for many businesses and entrepreneurs during challenging times.
The EIDL loan is for any businesses located in an official disaster area or experiencing substantial economic injury. The SBA has introduced the EIDL Hardship Accommodation Plan, which helps those facing continued financial difficulties. In this blog post, we will explore what the plan entails and how it can benefit loan recipients seeking EIDL loan forgiveness.
Many EIDL loan recipients are eager to achieve loan forgiveness to alleviate their financial burdens. If you fall on continued hard times after receiving the EIDL, there is a plan forward. The process of EIDL loan forgiveness involves meeting certain criteria set by the SBA.
The EIDL Hardship Accommodation Plan is designed to offer relief to borrowers who are struggling to repay their EIDL loans due to unforeseen, short-term financial hardships. This plan allows borrowers to request accommodations such as loan term extensions, payment deferrals, and other options to help them manage their loan obligations more effectively.
To qualify for the EIDL Hardship Accommodation Plan, borrowers must demonstrate that they are facing financial difficulty that impacts their ability to repay their EIDL loan, such as being default on payments. Borrowers can submit a request for accommodation to the SBA, outlining their specific circumstances and providing any supporting documentation as needed. At Protect Law Group, we are committed to helping borrowers through this process.
By participating in the EIDL Hardship Accommodation Plan, borrowers can potentially avoid defaulting on their EIDL loans and preserve their credit ratings. The accommodations provided under this plan can help borrowers navigate challenging financial situations and work towards achieving EIDL loan forgiveness in the long run.
The EIDL Hardship Accommodation Plan serves as a valuable resource for recipients who are facing financial difficulties after receiving and seeking forgiveness. Protect Law Group can assist you in navigating this process from start to finish by outlining steps, negotiating on your behalf, and offering small business law expertise. By understanding the purpose of this plan, how to qualify for it, and the benefits it offers, borrowers can take proactive steps to manage their EIDL loans effectively and secure their financial stability.
If you are experiencing financial hardships related to your EIDL loan, book a consultation call with us to explore the next steps. Protect Law Group can provide the support you need to overcome these challenges and move forward with confidence.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Client personally guaranteed an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.
We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
Clients personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
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