The Worst Case Scenario When You Can’t Pay Your #EIDL Loans: What To Do
I know everyone has been waiting on the edge of their seat for more news about the EIDL loan process and we are still seeing some slow movement, nothing very hard yet in the way that we deal with defaults or people who can’t make their payments.
But we are seeing a little bit of information and I’ll give you some insights on what I’ve seen so far from people who’ve shared back with me about their conversations with the SBA.
One business owner that I know of had closed his business. It had actually been, gone back foreclosed by a bank on some equipment.
So the business was completely done for the bank, took their equipment back, the business was dissolved to the state, and the SBA sent a questionnaire to this gentleman who owned the business to ask him, first, is your business closed?
And the answer to that if you come upon these questions, if your business is dissolved through the Secretary of State, meaning you have an entity: yes, the answer is yes. Your business is closed.
It asked if he had any intentions of paying the EIDL loan back. The answer should be “no”, pay attention to personal guarantee information and how big your loan was. You can reference our previous videos for more information about that.
Stick to the Facts
But you wanna make sure that you are going with concise answers and be direct and to the point. If the SBA gives you one of these questionnaires, you’ll wanna state facts, not feelings and emotions. Stick to the facts.
So just like if you were going to court, your lawyer would tell you yes or no answers and stick to the facts. Don’t go outside the bounds of creating your sob story here. This is not the place for that, that would be on the initial inquiry to say, “Hey, I can’t pay my loan back. My business was closed”.
But if the SBA gives you these questionnaires, I’d love to see what they send to you in comparison, I’ve only seen this come through on one particular case and that one actually came out of California.
So it also helps us to know what area of the country you’re in or where those pieces of information came from the SBA employees, independent contractors, all throughout the country and they’ve been doing that throughout the EIDL loan process because they just don’t have enough staff to handle this.
You will receive calls
So, first I will tell you that when you do receive calls, don’t be surprised if it comes in as like an unknown number. Some of these calls you can’t really clarify a hundred percent to make sure they’re not scammers calling you.
I personally received a call the other day where someone left a voicemail and said they were calling about my COVID EIDL loan and wanted to talk to me.
However, they did not say in that message that they were calling from the SBA.
So be careful. There are a lot of people out there scamming their way through this trying to get information.
Do not provide information over the phone
Unless you are 100% able to confirm where that person is getting your information.
If they call you, I would suggest that you tell them what I’ve just said, that you’re concerned about identity protection, and you would like them to email you something specifically from their email showing that they are the one that’s supposed to be calling you and do not give your email for them to email you.
Verify and match
If they are truly from the SBA, they should reply to your email and provide you with your loan number so that you can verify and match and make sure that person is actually from the SBA.
You cannot be too careful in these situations.
So if you’ve had any updates on how things are going with default situations, business closing, or being unable to pay your loan at the full scheduled rate, we’d love to hear from you.
We’re trying to provide this information back to the general public to help everyone get through this situation.
Please note we are not taking on any consulting engagements or setting meetings to discuss the EIDL loans, but we promise we will feed this information back to you through our content on YouTube to keep everyone aware of what we know.
Thank you very much!
For additional read: EIDL Loans: Best Practice for Making Payments
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.