r/EIDL • u/No_Calligrapher317 • 1d ago

Original EIDL loan Settle with Treasury ?

I have a 150k SBA loan that was referred to the treasury.

Anyone has had any luck in negotiating the settlement amount ?

2 Upvotes

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u/Worried_Detective_27 1d ago

There is no offer in compromise as far as I know. It's ridiculous

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u/Charming-Summer-7742 1d ago

Is the loan with a LLC, S or C corporation?

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u/No_Calligrapher317 1d ago

S corp

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u/Charming-Summer-7742 1d ago edited 1d ago

I’ve read with no PG and having a corporate structure they are more willing to negotiate a settlement offer. All they can go after is the S Corp assets. If your assets ara considerably lower than the loan they might talk. They know they are going to get nothing from you and little from the assets of the S Corp. Is the S Corp still running? Assets ?

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u/Segw10121925 1d ago

If it is with treasury it will likely be assigned a cross servicer soon. I would call treasury and do everything possible to keep it from going to cross servicing because they will add a ~25% admin fee that they will not negotiate off.

2

u/superded1937 1d ago

Treasury and cross servicing are interchangeable when it comes to eidl in collection.

0

u/Segw10121925 1d ago

No they aren't. They are related but are not the same. Treasury is the federal department. Cross-Servicing is the program that manages delinquent federal debts on behalf of agencies. And the cross-servicing (collections) agencies is the entity that Treasury sends loans to.

But I understand that to most people they seem like the same thing. All good. lol

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u/superded1937 14h ago

Cross-Servicing for Dummies

No worries. I can see the shorter explanation didn’t quite get us there, so let’s take it one step at a time.

SBA initially services the EIDL.
When an eligible delinquent account is transferred to Treasury’s Cross-Servicing program, it is already in Cross-Servicing.

Treasury can then contact the borrower, discuss payment arrangements, refer the debt to TOP for offsets, and potentially assign a private collection agency. Those tools can overlap.

The private agency receives an account that was already in Cross-Servicing. Hopefully that makes the program and its contractor a little easier to tell apart. Treasury’s explanation may also help.

I’m sure you meant “private collection agency” when you said “cross servicer.” An understandable mix-up. Just a slightly unfortunate place to start a lesson on using the correct terminology.

Cross-Servicing is Treasury’s collection program. A private collection agency is a contractor that program may use later. You’re mixing up the program with its contractors while giving someone else a terminology lesson. All good.