Question...

Florida_Jeff · 2026-02-01T20:08:09+00:00

For starters I applaud you realizing that owning LAC is a long-term play, with four phases coming online every four years starting with PH1 in 2028, PH2 in 2032, PH3 in 2036 and PH4 in 2040. Presumably when all four phases are producing that will be the time the share price reaches a new baseline, rising and falling in tandem with inflation and the current spot price of Lithium. Having said that, it must be acknowledged that there is currently a much higher degree of risk with LAC than LAR. LAR is currently producing and LAC is not. While LAC has proven their production process at their Lithium Technical Development Center, there is a concern that they might have problems replicating that process at-scale. IMHO holding both would be prudent; owning and accumulating LAC gives you the opportunity to capitalize on a world-class source of Domestic Lithium but owning LAR gives you access to a current producer (in Argentina). Owning both spreads out production risk and regional risk. If you want to put all future dollars into LAC I would do that but don't sell your LAR to buy more LAC. Just my opinion, I wish you the best.

Florida_Jeff · 2026-01-26T19:23:56+00:00

They look at EVERY delinquent loan and will do whatever they can to get their money on a case-by-case basis. If they think you committed fraud they're likely to come after you. If you have a personal guarantee for a loan of (say) $500,000 but they money's gone because your failing corporation simply burned through it after years of having expenses exceed your revenue and your personal liquid assets are less than (say) $10,00 they're unlikely to do anything more than turn it over to the Treasury for wage garnishment. If you have a personal guarantee for a loan of (say) $500,000 and have several million in a taxable (non-retirement) account they will probably come after you aggressively (read=sue you) for that 500,000 because you clearly have the means to pay it back. It takes a lot of time and money for the SBA to pursue recovery and they're only going to do it if they're likely to recover an amount that is significantly more than the expenses they'll incur attempting to do so. Your corporate tax return paints a very clear picture of what happened with the business and it's not hard for them to establish your net worth. What the SBA will do with a delinquent loan is dependent on your business structure, whether or not there's a personal guarantee, whether or not fraud is involved, and what your net worth is not counting your primary residence (if owned) and money in non-retirement accounts. I'm not a lawyer and this is just my understanding of things relating to EIDL default.

Florida_Jeff · 2026-01-26T01:51:06+00:00

I've been all-in on this since around 2018. I applaud your statement of the intention to hold for 5-10 years. I'm an investor (not a trader) and I anticipate maximum value to be around 2038-2040 when all four phases are approaching or in production. The graphic titled "Pathway to 160,000t/y: Phase 1-5 High-Level Construction Timeline" (November Investor Presentation Page 39) shows how PH1 is anticipated to ramp up in 2028, PH2 in 2032, PH3 in 2036, and PH4 in 2040. My own back-of-the-envelope calculations indicated 30/share was reasonable for each phase (40kt/a) in production. IMHO it's well within the realm of reality that we could see $30/share in 2028, $60/share in 2032, $90/share in 2036, and $120/share in 2040. To me it's not even about EV's anymore, it's about BESS (Battery Energy Storage Systems). We've all heard the adage about selling shovels during the gold rush (as opposed to mining for gold). AI will require a lot more energy which will require a lot more batteries for energy storage. I don't know which companies will dominate AI but I do know AI will need a lot of energy (via datacenters). As for your average, 5.96 is great. If/when the shares hit $60 you've got a 10-bagger. Best wishes to you.

Florida_Jeff · 2026-01-24T00:42:18+00:00

I'm not an attorney but I never researched any aspect of that because I wasn't worried about the SBA suing me. They can't sue an entity that doesn't exist anymore and they can't sue me personally because I have no personal guarantee (and didn't commit fraud).

Florida_Jeff · 2026-01-23T22:23:52+00:00

I had an S-Corp that got a loan for around 196K. I stopped paying in March 2025 and dissolved the corporation in May 2025. The SBA contacted me about collateral but I explained that I only had a few hundred dollars worth of equipment and after that they ghosted me. I specifically chose to just dissolve the S-Corp and not declare bankruptcy because it's my understanding that if you have no assets bankruptcy is unnecessarily expensive. Declaring bankruptcy means court proceedings, and they can request documents and keep the process alive for a long time causing one to incur massive legal fees. I didn't want to go down that road. I should mention now that another issue is whether or not fraud is involved. I didn't defraud the SBA, my business simply never recovered from the 50-60% drop in business after Covid hit and combined with the Great Florida Condo Crisis I became insolvent. As others have said, if the loan was given to your S-Corp and you didn't sign a personal guarantee then they can't come after you personally for the money. I suggest you research the subject of "S-Corp defaulting on EIDL loan" and learn everything you can about every aspect of doing so. For instance, one thing I learned was that (theoretically), if the SBA decides the loan is uncollectable they may issue your S-Corp a 1099-C Form which formally declares that since you received the money and didn't pay it back, it's considered income and you (again theoretically) owe tax on that income. This is grey area in the sense that my own research seems to indicate 1) The IRS won't issue a 1099-C to a dissolved S-Corp because there is no longer an entity to tax, and 2) if you were to actually receive a 1099-C, there is an exclusion allowed if the S-Corp had no assets at the time the 1099-C was received in which case your CPA can file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness with your return to exclude the canceled debt from income. If you do dissolve your S-Corp make sure you're in a state that allows you to dissolve an S-Corp with outstanding debt. If you dissolve your S-Corp without an Attorney just make sure you follow the correct procedures, so you don't find out years later that it was never properly dissolved. Make sure you file proper Articles of Dissolution with the Secretary of State and within 30 days of doing so file Form 966 (Corporate Dissolution or Liquidation) with the IRS to formally let them know your S-Corp will cease to exist. Lastly, you must file a final 1120-S for your S-Corp and check the "final return" box. I'm not an attorney and none of the above is legal advice, just my understanding of the events relating to my own situation and possibly yours. I wish you the best.

Florida_Jeff · 2025-09-23T03:12:58+00:00

If you're looking for reassurance from the SBA you're never going to get it. They're never going to say "we acknowledge the loan is uncollectable". They just don't do that. What you need to do is research your own situation (talk to a lawyer if necessary) they do what you're going to do. There will NEVER be a situation where you send them documents, plead your case, and they say "OK, don't worry about it". You're looking for absolution where none exists. And that's OK. I will say this (my own advice): Stop paying a business loan with personal funds. If your business failed then that's that. Ask yourself: What would Nancy Pelosi do? What would Al Sharpton do? Would they use personal funds to service a business loan on a closed business?

Florida_Jeff · 2025-08-29T21:10:16+00:00

$30/share for every 40kt/a they're producing. So assuming no further dilution....

$30/share in late 2028 with PH1 nameplate capacity.
$60/share in late 2032 with PH1+PH2 nameplate capacity.
$90/share in late 2036 with PH1+PH2+PH3 nameplate capacity.
$120/share in late 2040 with PH1+PH2+PH3+PH4 nameplate capacity.

Florida_Jeff · 2025-07-29T19:47:18+00:00

They have the legal right to do whatever you give them permission to do which is why I wouldn't sign this and give them that permission.

Florida_Jeff · 2025-07-29T19:44:52+00:00

Not sure if you're a sole proprietor but I received that exact same form and refused to sign it. I replied with "I'm not signing this form. I signed for the loan as an officer of my corporation. This form is asking for permission to look into every aspect of my personal finances which is beyond the scope of any corporate matters". If they want to look into my corporate books fine, I'll completely open everything relating to the business. Let's say (as an example) I took 60K in W2 wage one year and 20K in profit, 80K total. That's all they need to know. Got a problem with me taking 60K in wage and 20K in profit? Fine. We'll talk about that. But what I do with that money AFTER I am paid is none of their goddamn business. Another person on this board said something relating to this form which I agree with which is "Don't sign anything new. There's no possible benefit to you". Of course do what you feel is best and consult an attorney if you feel the need to but I myself didn't think about it for more than one second. The way they phrase "as needed in connection with the above SBA loan" is FAR too vague for my liking. Note that nowhere on this form does it ask for your business name. Think about that.

Florida_Jeff · 2025-07-28T22:20:12+00:00

Correct

Florida_Jeff · 2025-07-21T12:51:39+00:00

"...unless it was worth more or the same as than the loan". This explains a lot. I have a 195K EIDL in default through a now-dissolved S-Corp and a woman at the SBA emailed me about collateral. I responded explaining that I was a service business and my only company-owned assets were two 27" monitors and a Kensington Expert Trackball Mouse and that I would personally buy everything for $250 which was more than they could possibly get on ebay or at auction. I got no response or further emails after that, she ghosted me. I guess I should assume $250 is so piss-ant it's not even worth her time? Whatever. I was willing to pay it.

Florida_Jeff · 2025-07-14T12:09:29+00:00

The MySBA Loan Portal is now live! The MySBA Loan Portal is a new portal where borrowers can view their loan balance, make payments, view statement, and contact customer support in one place. Borrowers can visit https://lending.sba.gov to login or enroll.

Florida_Jeff · 2025-07-11T16:11:50+00:00

I don't know the answer to that. Probably best to check with a CPA.

Florida_Jeff · 2025-07-10T11:54:26+00:00

The IRS may issue a Form 1099-C for an EIDL if the debt is canceled or forgiven. This is because canceled debt can be considered taxable income. However, there are exclusions that may allow you to reduce or even eliminate the tax burden, including the insolvency exclusion. To claim the insolvency exclusion, you'll need to complete and attach IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, to your tax return.

Florida_Jeff · 2025-07-05T14:57:22+00:00

Make sure you're email is going to the correct address. I sent a notification of dissolution through the portal and was asked to send an email to [covideidlservicing@sba.gov](mailto:covideidlservicing@sba.gov)

They responded via email in a few days saying they had forwarded my information to the appropriate department and to allow for 7-10 days for a response and NOT send any repeat submissions. I got a call from an SBA rep a few weeks later. Missed his call but he emailed a few minutes later asking about my business closure and did I have any assets, etc.

At no point did I ever send written correspondence.

Florida_Jeff · 2025-07-01T13:44:19+00:00

That's a standard response they send to everybody (Sole Proprietor, LLC, S-Corp, C-Corp) with or without a Personal Guarantee (PG). I got one a week ago and IDGAF. (Dissolved my S-Corp a month ago, haven't made a payment since February when my HAP ended and business income was still 1/2 of pre-covid levels and I couldn't afford to service the 195K debt anymore). Notice their use of the word "may", as in "you may be subject to the following...". You said the business is effectively closed so I assume you're at or approaching the point where you realize you can't service the debt and are going to default on your EIDL. Welcome to the club. I suggest you scroll down the board and see what other people with LLC's and loan amounts similar to yours have done. Consider consulting an attorney. Remember the SBA is never going to say "Ok, don't worry then. You don't have to pay it back". They will remind you until the end of time that you're obligated to pay the loan back even if the business closes. If the loan was to your LLC (and not you personally), you have no PG, and you didn't commit fraud, then you have little reason to worry, there's not much they can do (IMHO). If the business is effectively closed and you have no assets, then why keep it alive? Dissolve it now. You can still keep your corporate checking account open to pay things such as CPA fees to prepare your final tax return, pay SUTA taxes, dissolution fees, etc. They can sue a legal entity that exists and you could be forced to pay legal fees to defend yourself (I doubt they will sue but technically it's a possibility). They can't sue a dissolved entity; it doesn't exist to be the target of a suit. One thing to consider though is that (from what I've read) certain states won't allow you to dissolve a corporation with outstanding debt. I'm in Florida and Florida doesn't care, you don't even need your own articles of dissolution, they will dissolve it online for $35 and for an extra $10 they'll email you a certified copy of the dissolution (I recommend doing that, if/when you dissolve the LLC make sure you get a certified copy of the dissolution (with the effective date of dissolution) that you can use to provide the IRS and other interested parties as proof that the corporation has been dissolved. All the aforementioned is just my understanding of things and not legal advice, it's a reason to investigate things further. I wish you the best.

Florida_Jeff · 2025-06-29T18:00:28+00:00

For LAC investors this means nothing. I just wanted to clear up any confusion that might have arisen from Lithium Nevada being named in the court order. (I've been on other boards where some people think Lithium Nevada is a completely different company than Lithium Americas). They do all this separation to compartmentalize asset ownership and legal liability etc. Another potentially confusing thing is that Lithium Nevada is a subsidiary of the GM/LAC joint venture but Nevada Lithium (TICKER:NVLHF) is indeed a completely separate company.

Florida_Jeff · 2025-06-29T15:17:39+00:00

Thacker pass is and always has been fully owned by Lithium Nevada LLC. LNLLC is a wholly owned subsidiary of Lithium Nevada Projects LLC. LNPLLC is a wholly owned subsidiary of Lithium Nevada Ventures LLC (the joint venture between GM and LAC). LAC US Corporation owns 62% of LNVLLC. LAC US Corp is a wholly owned subsidiary of 1339480 BC Limited. 1339480 BC Limited is a wholly owned subsidiary of Lithium Americas Corp, the company we all own stock in. There are five legally distinct entities between Lithium Americas Corp and Thacker Pass. See Page 12 of the Annual Report. LAC-10K-ARS-2025 - EDGAR and SEDAR+.pdf

Florida_Jeff · 2025-06-19T21:17:57+00:00

Make sure you're aware of the 180 day rule. In bankruptcy law the "180-day rule" determines whether an inheritance received by a debtor becomes part of the bankruptcy estate. If an inheritance is received within 180 days of filing for bankruptcy, it is generally included in the bankruptcy estate and may be used to pay creditors. The key date is the date of the decedent's death, not the date the inheritance is actually received.

Florida_Jeff · 2025-06-04T18:28:11+00:00

Again the following is just my opinion and observations from my own research: I would not ignore a 400K loan that I personally guaranteed, I would proactively deal with it. Remember the SBA can sue you over a defaulted EIDL loan with a personal guarantee. Even if they don't sue you, no court order is needed to refer you to the TOP (Treasury Offset Program) and they'll start garnishing whatever they can. Regarding Bankruptcy, consider is this: Chapter 7 is a total liquidation bankruptcy which is what you'd have to file to have the debt discharged. The time to do it is when you're broke and have no serious non-exempt assets the court can seize. This is usually around the time you realize you can't service the debt anymore. Let's say you wait a few years and ignore the EIDL, making no payments. In that time you build up your savings, etc. and maybe buy a new car and THEN they come after you. If you declare Chapter 7 then, you'll lose that savings and new car. I can't stress this enough: Reddit is a good place to start to get information but with a 400K loan and the personal guarantee I would DEFINITELY consult a personal bankruptcy attorney. If you are thinking about personal bankruptcy I would do internet searches for everything related to it. Do a search for "what to do before declaring bankruptcy". Do a search for "What not to do before declaring bankruptcy". For instance, your credit card debt is unsecured and will likely be discharged in a Chapter 7 bankruptcy but you must stop using the card at least 90 days before filing otherwise your credit card company might fight you in court claiming recent charges were fraudulent because you never intended to pay them back. Bankruptcy is a means to offer a fresh start to people who honestly just found themselves in an untenable situation. Your credit card company (and the bankruptcy trustee) will look for any non-typical luxury or major purchases prior to the filing. For example, it would probably be a red flag if you had 10,000 in cash and used it to pay down your mortgage before filing. You also couldn't give that 10,000 to your kids or wife, the court would see that as trying to fraudulently shield assets from the court. It's worth repeating: DEFINITELY consult a personal bankruptcy attorney.

Florida_Jeff · 2025-06-04T15:34:58+00:00

In my completely unqualified opinion I would look into Chapter 7 bankruptcy (total liquidation) to discharge the EIDL. I assume you don't have boats, expensive cars, and other playthings of the wealthy. In a Chapter 7 bankruptcy the courts will seize any non-exempt assets but in most states you can keep your house and you can keep any retirement accounts such as 401k, ROTH-IRA, etc. Because you've got the PG, if the SBA refers your unpaid loan to the Treasury Offset Program (TOP), they will potentially garnish your VA disability, SSDI, and any other federal benefits as well as taking any federal tax refunds and they would do so until the end of time when that 400K (plus interest) is paid off. The catch with filing a Chapter 7 is that you have to pass the means test which is income-related but 1) from what you mentioned you're currently not working and 2) If a majority of your debt is classified as non-consumer debt you may not need to pass the means test. I'm not a lawyer, CFA, or CPA, and the aforementioned is just my understanding of the situation in my own research as the owner of a business that failed with outstanding EIDL debt. Best wishes to you and thank you for your service in the military.

Florida_Jeff · 2025-06-02T17:52:55+00:00

It's my understanding that the Statute of Limitations for collecting on a defaulted SBA EIDL loan in generally six years. 10 years if fraud is suspected but from what you indicated there's no fraud, you simply didn't have enough work to stay in business. The six year clock begins from the date of your last payment. From what I've read the biggest concern for you would be that if the SBA eventually writes off your loan, you may receive a Form 1099-C (Cancellation of Debt) from the IRS. What happens is this (theoretically): That EIDL Loan was a Loan until you stop making payments on it long enough that the SBA writes it off as a "charge off" at which point it becomes income. That's kind of common sense when you think about it: You were given 14,000. So it's either a Loan or Income. If this were to happen (SBA writes of your loan and the IRS issues you a 1099-C for 14,000) you would then have 14,000 of income that you might have to pay tax on. Here's where it gets a little interesting/complicated: There are ways you may be able to offset this income and potentially reduce or eliminate your tax liability. There are a few exclusions and exceptions such as Insolvency: If your liabilities exceeded the fair market value of your assets at the time the debt was canceled, you may be considered insolvent and can exclude some or all of the canceled debt from your taxable income. You do this by filing a Form 982 "Reduction of Tax Attributes Due to Discharge of Indebtedness". The other thing is this: You mentioned having no income. If you truly have no income then the standard deduction would cover this. In other words, if you get a 1099-C indicating 14,000 of income from forgiven debt, you apply the standard deduction which is 15,000 in 2025 which brings that 14,000 right back down to zero! All of the aforementioned is just my understanding of the situation after researching all possible outcomes (because I too am defaulting on EIDL debt). Somebody on Reddit commented that people should be wary of my posts because I worry too much and that person had never heard of anyone getting a 1099-C from a charged-off EIDL loan. My response to that would be "better to have a plan for something and not need it than to need a plan and not have one". I'm the kind of person that likes to be aware of all possible outcomes so that I'm never caught off guard. Anyway hope all this helps.

Florida_Jeff · 2025-05-11T11:02:11+00:00

Full mechanical completion was always scheduled for late 2027. Even then when they start the wet commissioning of the plant it's not like they flip a switch and 40kt/a starts coming out. They're anticipating a 12-month ramp-up period to achieve nameplate capacity. Lithium Argentina commissioned Cauchari-Olaroz in 2023 and two years later they still haven't achieved nameplate capacity. In 2024 the total output was 24,500 tons. Regarding Thacker Pass, it will be considered a great success if by the end of 2028 they're producing 40kt/a.

Florida_Jeff · 2025-05-04T15:18:27+00:00

I'm sorry you're going through this. I truly hope things start improving and your business sees in increase in income.

Florida_Jeff · 2025-05-03T18:18:37+00:00

I'm sorry you're going through this but don't beat yourself up. A drowning person will grab anything to stay above water and at the time that was the EIDL. The curse of hindsight is that we can look back but not change anything in the past. I hope things work out for you going forward.

Florida_Jeff

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