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.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Client's small business obtained an SBA COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) where borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.
Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.
This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.
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