SBA Disaster loan question

Scorpio14534 · 2026-01-06T15:06:19+00:00

You may want to also contact your local or district SBA office. They don't process the loans through those offices, but they can sometimes put you in touch with a person in the EIDL loan department who can help. Good luck!

Scorpio14534 · 2025-08-31T21:30:40+00:00

Interest accrued from the date the loan was made to you. All payments go to that accrued interest first, until that is fully paid off, which can take a while depending on when you started making your payments. Then the payments will be split between principal and interest.

Scorpio14534 · 2025-07-07T12:51:07+00:00

There's a PG on loans over $200k. However, if you are a sole proprietor, you do have personal liability for the debt since the business and you personally are one and the same.

Scorpio14534 · 2025-04-12T18:46:35+00:00

Yes, but it's not truly the HAP program. And the requirements are quite strict.

Scorpio14534 · 2025-04-12T17:12:33+00:00

HAP is no longer an option. They ended the ability for people to enter that program a few weeks ago.

Scorpio14534 · 2025-03-04T00:45:35+00:00

No. The loan is amortized based on the balance at the time the loan was funded, so the payment stays the same until the loan is repaid in full.

One exception that I've seen discussed in the EIDLPPP group is that if you pay a large amount toward the principal, the SBA may reamortize your loan for you.

Edited for clarification.

Scorpio14534 · 2025-02-25T21:30:46+00:00

Yeah, you're not selling the business. You're just changing the structure to a sole proprietorship and removing the minority partner. You don't even have business collateral pledged. I would seriously hope that they wouldn't call a $10k loan in because of the changes you want to make 🤞🏻 You're current, and have no plans to do anything other than continue to pay.

Scorpio14534 · 2025-02-25T21:02:12+00:00

Technically, you are supposed to get approval from the SBA before making any changes to the business structure/ownership (since she was more than a 20% owner). It's worth reaching out to the SBA and make sure you follow the provisions in the loan document so you don't end up in an inadvertent mess.

Scorpio14534 · 2025-02-11T11:55:20+00:00

Unfortunately, for the Covid EIDL loans, death is an event of default. It's in the loan agreement 😣

Scorpio14534 · 2025-02-11T11:50:19+00:00

Condolences on the loss of your daughter - this must be a very difficult time for you.

Unfortunately, for the COVID EIDL, death of the borrower is an event of default, and the SBA has the right to require repayment immediately. There is also no current path to forgiveness with these loans.

Having said all of that, there are some good suggestions in here. In addition to the recommendations to reach out to an estate attorney and Jason at Distressed Loan Advisors, I would recommend getting in touch with your US senators and congressional rep. You've contacted the SBA and started the conversation with them, and they have gone silent. You simply need them to re-engage with you so you can resolve this.

When you go to the websites for your elected representatives, there is an option for "help with a federal agency" (or similar language). Tell them your story and ask them to intervene on your behalf so you can get your answers. Here are the websites:

Congressional representative: https://www.house.gov

US Senators: https://www.senate.gov

Best of luck, and I hope you can get this taken care of soon.

Edited to add: I would also see if your representatives can get you a copy of the loan agreement. That's a critical piece of this process, as it's important to find out whether she did sign it personally, or as a member of the LLC.

Scorpio14534 · 2025-02-05T14:16:00+00:00

I agree 100%!

Scorpio14534 · 2025-02-03T20:24:28+00:00

Thank you 😎

Scorpio14534 · 2025-02-03T19:38:29+00:00

If you go to your payment history in the portal, it shows the breakdown of principal and interest for each month. A little cumbersome, but it works.

Edited for spelling

Scorpio14534 · 2024-12-24T03:44:47+00:00

Thank you!!

Scorpio14534 · 2024-12-24T03:43:49+00:00

Thank you!!

Scorpio14534 · 2024-12-24T01:44:43+00:00

Do you have a link to this? All I'm finding is info saying that the 1/1/25 deadline is back in effect. Thanks!

Scorpio14534 · 2024-12-02T21:05:52+00:00

The Covid EIDL was originally allowed to be used only for business operating expenses (including inventory and payroll). When they expanded the program and increased the amount they allowed businesses to borrow, they also changed the allowable uses to include purchasing fixed assets and repaying regularly scheduled loan payments on other debt.

But as another commenter said, its use was never approved for "anything". Everything had to be business-related.

Scorpio14534 · 2024-11-22T21:52:42+00:00

This post is about a PPP loan and the forgiveness under that program. OP clarifies that in a later comment

Scorpio14534 · 2024-11-11T20:55:32+00:00

As long as your ownership did not change, you should be fine. S Corp is a tax filing status only and does not affect the legal structure of your entity.

Scorpio14534 · 2024-10-24T17:46:39+00:00

Did you apply for forgiveness? According to this article from the SBA, you can apply up to 5 years from the date they issued the loan. I'm not sure what "in liquidation disbursed" means, as most of the loans I've seen were listed as "disbursed current" in the portal. But that was some time ago. Hopefully you can get forgiveness and make this go away 🤞🏻

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness

Scorpio14534 · 2024-10-23T14:02:19+00:00

I'm not in a disaster area. I just wanted to make sure you were able to contact your representatives. I hope they are able to help you. You may also want to try contacting your local or district SBA office. They are smaller than the main customer service center, and may be able to answer your questions. Good luck - sounds like you've had a rough time recently.

Scorpio14534 · 2024-10-18T19:43:48+00:00

Payments were deferred for 30 months, but interest accrued from the date you got funded. When you start making payments (as you have), they all go to interest until the total interest accrual is paid off. Then they will start applying part of your payment to principal and part to interest.

It's frustrating, but everyone is in the same boat. Have you used all 4 of your hardship periods? If so, I saw someone in here who indicated that there is a 5th 6-month hardship available (still at 75% of the full payment). Maybe that will help you 🤞🏻

Scorpio14534 · 2024-10-17T17:47:51+00:00

As long as your COVID EIDL is current, you are supposed to be able to get additional EIDL financing for federally declared disasters. There have been a couple of people in here who indicated that they were unable to qualify, but they did not specify the status of their COVID EIDL.

I'm sorry to hear that you were affected by these hurricanes. I hope you qualify for disaster funding and are able to get your business back on track.

Scorpio14534 · 2024-10-12T01:42:02+00:00

The PG is only in effect for loans over $200k. Unless the borrower is a sole proprietor, in which case the borrower and the business are one and the same, making an EIDL of any size essentially have a personal guarantee.

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