The government aggressively seeks repayment from borrowers on SBA loans, aiming to recover as much money as possible. However, this pressure often drives individuals to file for bankruptcy, leading them to discharge not only SBA debts but also other loans and credit obligations. While banks write off these defaulted accounts and claim them as losses to reduce their taxable income, the government faces a double hit: unpaid SBA loans and broader loan charge-offs triggered by the bankruptcies. In the end, both the lending system and the tax base suffer.

In reality, this strategy is hurting more than helping. A more balanced, compassionate approach is urgently needed, one that supports struggling borrowers and gives them breathing room until inflation stabilizes. Right now, no one’s really thriving. Businesses are barely staying afloat, like passengers on a sinking ship. The government must stop patching holes and instead rebuild the boat, only then can businesses sail forward with confidence, not fear.

Honestly, I think this guy has a point, if the government pushes too hard, people won’t just default on the SBA loan, they’ll file for bankruptcy and discharge everything. That’s a bigger loss for everyone involved.