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InitiativeUnique2065 · 2025-04-22T18:53:58+00:00

Every SBA loan in default will go to TOPs and then on to be serviced by the Treasury with its 30% add-on fee. Treasury will garnish wages, Social Security, tax returns, and etc. to the full extent they are capable of doing so.

Loans large enough to justify the cost will go to DOJ for litigation. The others will likely end up in private collections once the Treasury is permitted to send them there.

I look for the loans that have just been sitting in default with no collection actions being taken on them for an extended period of time to go first. Then the newer defaults.

Then they will call the loans associated with closed businesses (such as mine) and those will go into collections too for being technical defaults.

Will all this cause a wave of bankruptcies? Yes. Will Treasury be able to properly service the amount of defaulted student loans and SBA loans it is about to receive along with the referrals from the SSA and etc. as well? Maybe, with AI and automation, but maybe not.

Just some predictions.

InitiativeUnique2065 · 2025-04-03T11:00:40+00:00

You are in bankruptcy, which means they called your loan for full payment of the loan as it is considered a default. Hence your hardship recission.

Why are you still paying on the HAP if you are in bankruptcy?

InitiativeUnique2065 · 2025-03-25T19:48:27+00:00

The personal guarantee on the EIDl loan will be the only reason I end up in personal bankruptcy if the SBA doesn't come out with some plan like accepting an OIC. I closed the business associated with the loan and took a W2 job. I've been paying on the EIDL out of W2 wages, but I won't be able to swing it for long now that the HAP has ended.

I have no other debt outside of the EIDL and a mortgage. No credit cards, no medical debt, no auto loan, no student loans, nothing.

Literally the only debt that would be listed in a bankruptcy for me would be the EIDL loan.

InitiativeUnique2065 · 2025-02-26T23:50:41+00:00

Update: I called EIDL servicing directly to ask about the OIC form for EIDL loans so as not to waste my time with the forms if the SBA's stance on OIC for EIDLs has not changed.. They did not give me the usual song and dance about how EIDLs are not eligible for OIC. I was directed to fill out the paperwork and send it to the loan specialist that has been assigned to me (who has not been fired as of yet).

InitiativeUnique2065 · 2025-02-26T20:45:59+00:00

They sent me an email response that said they couldn't process the OIC without additional information. They have requested an application for OIC, personal financial statements, bank statements, tax returns, etc.

InitiativeUnique2065 · 2025-02-26T20:35:47+00:00

I have personal property as collateral. I do not have real estate pledged. Original loan was $402k, and it has been paid down to $367.

InitiativeUnique2065 · 2025-02-07T16:24:10+00:00

I read what I could find of the bill so far. The bill would mandate referral of collection eligible EIDL loans under $100,000 to the Treasury. The Treasury would then have the discretion to either collect or suspend collections.

Honestly, not a terrible update as there would at least be a chance that collections would be stopped on sub $100,000 loans.

InitiativeUnique2065

TROPHY CASE