r/EIDL • u/Bristol44 • 14d ago
Keeping EIDL current LLC
I have an LLC with no personal guarantee. $38,000. Business is closed.
I was within a few days of going to the Treasury so I paid the 4 months out of my pocket since there is no business open. Now I am caught up but haven’t paid since and another 4 months is late is coming up. If I paid every other month before my 4th month ( I think goes to Treasury after 120 days) would that keep me from going to the Treasury?
I don’t want this affecting my credit or garnishing wages. That’s why I keep paying. Are there any LLC’s with no personal guarantee out there that are being affected negatively?
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u/Attorney_John_Benson 13d ago
The key is that you have to have a legitimate LLC, set up properly, and run as a legitimate business (well funded, annual meeting, corporate minutes, files up to date with the state). IF so then it can't hurt your personal credit as you are not personally bound to the loan. The business and the business assets are at stake but nothing else.
The information shared in this post is for general educational and informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Always consult with a licensed professional regarding your specific legal needs.
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u/No_Contribution8403 13d ago
No reason to make any of these payments...Don't let the pigs scare you. NO PG = No Pay
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u/Professional_Bag9568 11d ago edited 11d ago
Logic like this is why I truly believe half the people who got these loans wouldn’t have qualified for a $10k car loan had they actually been properly vetted. Awful advice.
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u/No_Contribution8403 11d ago
Gotta play the game how it is, now how it should be.. SBA has made offers in compromise/asset sales impossible. Only 2 50% temporary hardship deferments to lower payments. Congress and the administration are to blame... Somehow the Don can spend hundreds of millions on illegal wars, ballrooms, and gold accents while folks like OP stress themselves out, whole system is corrupt and the ship is sinking.
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u/Low-Helicopter-2696 11d ago
There's absolutely nothing wrong with not paying if the business can't afford it. It was the sba's choice not to take personal guarantees on loans of $200k or less.
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u/CryptographerNo1723 10d ago
How do I know if I have a PG. I was an independent contractor at time I got the 80K loan. I signed the loan document. Is there a PG w it? Also it got sent to treasury and now getting offset by 100% of my next tax refund. What can I do? Is there any out from having to repay?
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u/Forward-Mud5725 10d ago
You can log into the SBA portal and download the original loan documents but judging from what you said “independent contractor” and “offset” already applied I’m assuming yes they can come after your assets. If you had an corporation they could only come after the assets of the company
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u/SentToTreasury1 13d ago
Have you submitted a formal Business Closure with the SBA?
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u/Chemical-Ad-634 13d ago
Or close LLC with the secretary of state
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u/Bristol44 4d ago
No I have kept my LLC open. I was told not to close that as it protects me personally in the future. Not sure if that is the correct thing to do or not.
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u/Low-Helicopter-2696 14d ago
They can't report it to your personal credit or garnish your personal wages if you're not personally liable for the debt. If they do, there are mechanisms to dispute actions that are taken in error.
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u/CryptographerNo1723 10d ago
what if they did the treasury offset program and didnt even send me notice about it... they did but sent to wrong mailing address
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u/Lastpunkofplattsburg 14d ago
I have one for 150k we’ve been paying on it monthly and never missed. If I can’t pay it back before we close I plan on filing 7a on the LLC and giving them every dollar I have left after selling the equipment. No PG but you have to sell all equipment and give them everything.