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What Is The EIDL Hardship Accommodation Plan?

Protect Law Group can provide the path forward for recipients of the EIDL program seeking loan forgiveness. Book a consultation call with us today!

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What Is The EIDL Hardship Accommodation Plan?

Protect 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.

Document that reads 'EIDL'

Understanding 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.

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The Purpose of the Plan

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.

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How To Qualify

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.

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Benefits Of The Plan

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.

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Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$150,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$150,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

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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