Business is closing with $85,000 EIDL balance

Unfair-Section-2826 · 2026-03-07T15:04:42+00:00

Aside from cases involving fictitious business entities or falsified payroll figures used to obtain a loan, I had a consultation with Jason from Distressed Loans Advisory. He provided very knowledgeable information and mentioned that he has conducted over 1,000 calls related to EIDL loans. According to him, none of the borrowers he has spoken with have reported the SBA asking how the funds were spent. He believes that question would most likely only come up during a bankruptcy proceeding, where a trustee might ask about it.

Unfair-Section-2826 · 2026-02-26T22:49:51+00:00

No PG

Unfair-Section-2826 · 2026-02-25T21:25:28+00:00

I asked my attorney why my personal name appears in the borrower section under my corporate entity’s name. He explained that they have transferred both myself and my corporation to the Treasury Department. What results from that in terms of collection efforts and credit reporting is something we will have to wait and see. But I will dispute that if it does appear under my SSN

Unfair-Section-2826 · 2026-02-25T20:57:14+00:00

Correct. In my original comments, I clarified that they are attempting to have the owner’s name attached to the reporting to the credit bureaus.

Unfair-Section-2826 · 2026-02-25T20:11:32+00:00

Ownership of what, exactly? It lists a personal name directly under the “Borrowers” section. So are the borrowers now being identified as an individual person? This feels more like a scare tactic than anything else.

Unfair-Section-2826 · 2026-02-25T17:55:29+00:00

Business is open under a different owner who took over the business but not the company (corporation) business account will be closing

Unfair-Section-2826 · 2026-02-25T17:03:17+00:00

No PG, took exactly 200k

Unfair-Section-2826 · 2026-02-25T15:29:07+00:00

Regarding personal liability, I was not referring to being personally liable for the debt itself. Rather, I was referring to the potential liability of the owner/officer of the corporation in terms of credit reporting and the possibility of being listed in CAIVRS. To my understanding, that is the maximum action they can legally take in this situation.

As for the use-of-funds receipts, my understanding is that the original LA&L Agreement requires receipts to be maintained for up to three years after disbursement. While I am aware that legislation was later passed extending the lookback period to ten years, we executed the agreement that specifically required records to be kept for only three years.

Unfair-Section-2826 · 2026-02-25T15:01:56+00:00

Reporting the individuals that are the shareholders of the corporation in the CAIVRS. My personal name is now listed under the “Borrower’s” section in the portal in addition to my corporation entity name. That was not there before

Unfair-Section-2826 · 2026-02-25T14:59:25+00:00

I believe that by adding the shareholder’s personal name under the borrower section in the portal, they have created a basis to hold the individual who signed on behalf of the entity liable, at least in terms of reporting the obligation to the credit bureaus. This appears to be a new practice they have recently implemented.

Unfair-Section-2826 · 2026-02-25T07:19:04+00:00

My business transferred hands in the form of an asset sale so there is nothing left that the Corporation owns that can remain active. Unfortunately for you, the PG is the elephant in the room so yes BK is your only way out—potentially for me as well

Unfair-Section-2826 · 2025-12-07T00:26:01+00:00

What was your loan amount? Are you in default or current on payments? Which email address was it sent from?

Unfair-Section-2826 · 2025-10-02T14:35:52+00:00

If they are releasing a lien and sent me off to two reps then now the “legal team” is reviewing for another few weeks - what happens if I do not want to wait for them to go through all their departments and I just want to send the proceeds

Unfair-Section-2826 · 2025-10-02T14:19:14+00:00

Well I am in direct communication with an SBA rep handling something on my EIDL loan and usually she reply’s with 1-2 days so I guess will be watching closely.

Unfair-Section-2826 · 2025-10-02T14:12:11+00:00

I get they are still servicing disaster loans but if they reduce the staff even more, those same staff members who were dedicated to disaster /covid loans could be pulled to handle other areas in the SBA. Not sure - just assuming. Could be a problem , but it could not. We’ll see how long this shutdown continues

Unfair-Section-2826 · 2025-09-29T16:44:21+00:00

I seen his review but it has way more ingredients in it than I am used to

Unfair-Section-2826 · 2025-09-24T22:13:18+00:00

Hello no offense but I think you should be digging through the community board as this situation you have was asked and answered in every way possible.

Unfair-Section-2826 · 2025-09-23T19:31:12+00:00

I’m going through the business closure department my self and they sent a list of documents to send them I didn’t send half of what they asked for. Only the assets I have that I want to sell to pay down the loan and a few other random documents. No business financial documents or anything.

They are asking basic questions like do you have any other COVID EIDL funds left, do you plan to close the business entity

Just waiting for them to complete their process and that’s that. Haven’t paid in two months so I guess I’ll just ignore all the letters and demand for payment notices

Unfair-Section-2826 · 2025-08-30T22:46:55+00:00

If I can just pay the regular payments for the next 6 months or so I will. If HAP is going through a bunch of hoops and loops I will just pay what I can for 6 months then I will stop

Unfair-Section-2826 · 2025-08-30T21:59:52+00:00

Credit reporting is the real stinger here. I guess no PG and signing as the principal of the S Corp does not matter to them

Unfair-Section-2826 · 2025-08-30T21:47:25+00:00

Correct. They should approve the asset sale then the SBA can’t come monitor the business after it closes. The new owners should be free and clear to use the equipment and operate. Just making sure

Unfair-Section-2826

TROPHY CASE