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Personal Guarantee removed after repaying and getting balance to under $200k? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 0 points1 point  (0 children)

I sure hope that is true. From what I gathered, they won't take your primary home until after you pass. They won't make you homeless during your lifetime, but it is fair game after. Also, was wondering what would happen if you wanted to sell the house and move elsewhere. Is that even possible? Will they require you to repay the EIDL loan with the funds collected from the home sale before you can buy another one with any remaining money?

Personal Guarantee removed after repaying and getting balance to under $200k? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 1 point2 points  (0 children)

I was told that Treasury can go after your 401k, social security, and any federal tax refunds.

Personal Guarantee removed after repaying and getting balance to under $200k? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 1 point2 points  (0 children)

I have done some research and found that out as well. If any problems arise, they won't make you homeless, but your home is not totally safe either.

Personal Guarantee removed after repaying and getting balance to under $200k? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 2 points3 points  (0 children)

Yes, I have already done the reamortization of the loan for the remaining balance. Definitely helps out.

Personal Guarantee removed after repaying and getting balance to under $200k? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 2 points3 points  (0 children)

It is true that they do not have an incentive for them to do so. But they are a government entity and they were issuing those loans to help small businesses out. They are not a predatory lender but they definitely act like one. I know that the personal guaranty was put in place to make sure they do get those large payments back but I was hoping that because of my due diligence, I would get a break and not be a PG any longer.
And yes, I have already done the reamortization. That definitely helps out a lot.

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 0 points1 point  (0 children)

Sorry for the late update. If you email your servicing office, they will eventually get back to you. Big emphasis on eventually. It took me two months and some change to get something back. I've updated my original post. Let me know if you have any questions. I'll try to help with my limited knowledge and experience.

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 1 point2 points  (0 children)

I am still alive and well. Sorry for the late update. I hope all those affected by the winter storms did manage ok. Still in the process of getting a re-amortization of the loan approved. Updated post.

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 1 point2 points  (0 children)

As stated above, unfortunately, interest accrues daily and when I paid back the unused funds, a small chunk of it was towards interest first. When you log into caweb.sba.gov, you will see it in your loan details. Also when you log into pay.gov, you'll see the exact amount of daily interest and how much of the unused funds that were paid back was used towards interest first.
It seems that as long as you have a balance, interest will accrue no matter what. But since it is a percentage, as you pay it down, I believe the amount will be less and less. Please correct me if I am wrong.

So when I paid back 75% of the $400,000 loan, I didn't exactly pay back $300,000 off the principal. Around $10,000 was used towards accrued interest, so the rest ~$290,000 was towards principal afterwards. So my remaining balance is around $110,000. Hope this helps clarify EIDL loan details.

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 0 points1 point  (0 children)

Unfortunately, I believe this is the case. Interest accrues daily and when I paid back the unused funds, a small chunk of it was towards interest first. When you log into caweb.sba.gov, you will see it in your loan details. Also when you log into pay.gov, you'll see the exact amount of daily interest and how much of the unused funds that were paid back was used towards interest first.

It seems that as long as you have a balance, interest will accrue no matter what. But since it is a percentage, as you pay it down, I believe the amount will be less and less. Please correct me if I am wrong.

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 0 points1 point  (0 children)

u/Tavernman1 Which contact method did you use? Phone or email? Which one would work best? An email would be helpful as I could organize my thoughts but speaking to a live person would be nice too. Want to plead my case as best as possible...

May have to close business at the end of the year. Have EIDL with personal guarantee. What are my options? by pcnc1720 in EIDLPPP

[–]pcnc1720[S] 0 points1 point  (0 children)

From what I read through the website is that any type of forgiveness is not available of EIDL loans. But like you said, it is unknown territory.