April 25, 2023
As promised to wanna give you a little brief EIDL update for businesses that have closed down. I was on a call yesterday with the South Carolina District Office of the SBA. They had an open forum where you could ask any questions you like.
So I popped on that forum first thing and asked, “what is the status of loans of EIDL loans for businesses that have gone out of business and are no longer operating?”.
The gentleman who answered from the South Carolina office said, “you should be making all of your payments as usual and you can contact the Loan Servicing Center“.
This was all on chat from my side; so I put in a repeat column/follow-up to say:
What happens to the businesses completely dissolved? There is no operation, there’s no bank account, and there’s no personal guarantee under the $200,000 limit?
The gentleman said they should still continue to make their payments, and he suggested that…
I’m quite puzzled by this because what other way is there if a business doesn’t exist, doesn’t have any assets, doesn’t have any money, and there’s no personal guarantee of the owner, there is nothing to go after.
I frankly don’t think the gentleman had any idea what I was dealing with the situation on EIDL loans for the businesses that have closed.
He sounded quite like a robot and just said they should keep making payments. Now we all know that’s not a possibility if a businesses closed, they have no money, they’re not going to make payments. For additional read: Will I Go to Jail if I Can’t Pay My EIDL Loan
So my take on this is the SBA still doesn’t have a plan, so we’re gonna keep watching and I’ll keep asking those questions when they come up with these periodic events.
I will keep asking the questions.
The news for you is there really is no change. Keep at it the same way. If you’d like to contact the Loan Servicing Center, please let me know what you hear from your end, and I’ll be sure to keep everyone posted on the latest and greatest in the EIDL default crisis.
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.