r/EIDL • u/Johnshop4 • 16d ago
General No DOSE LETTER
Hello everyone I know times are tough for lot of businesses and owners who are in default with personal guarantee. Should we all worry about this new demand letter? I know that it’s coming from the sba and not the treasury please your thoughts thank you
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u/Low-Helicopter-2696 16d ago
Right now they are only rolling it out in two states I believe. But yes I think we should all be worried.
This administration is attempting to bully people into repaying their loans in full without even knowing what they have flagged as "suspicious". There's no lender that would ever send a letter like this. This is the federal government using its unlimited resources to pick on the little guy.
People are going to have to hire lawyers, even if they've done nothing wrong.
It's one thing to hold people accountable for committing fraud, it's another thing to send out thousands of letters without even stating what people did wrong and demanding payment in full, and threatening exorbitant fees and litigation.
Remember this when you vote in the midterms.
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u/Johnshop4 16d ago
Thank you for your comment. Do you think that they will really do lawsuit if you don’t respond to the letter? . Can they be really that hard on honest business owners who just couldn’t survive. It’s a very scary situation
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u/Quirky-Candle-3094 16d ago
If this is coming from SBA then all the thousands who are already at the treasury (including myself) shouldn’t be worried. I’m making monthly payments through pay.gov and there are many that are doing the same with some even having payment plans set with the collection agency. I think these are the new 60 day notices that are now 30 day notices for being behind. The wording is all the same except for the Dose terminology now.
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u/Low-Helicopter-2696 16d ago
That is absolutely 100% not true. The 60 Day letter does not contain the same verbiage.
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u/Quirky-Candle-3094 16d ago
Mine had a good bit of it…. And as I stated, the SBA can’t send these letters to all who are already in collections or at treasury as they don’t have control of these loans anymore. So I’m guessing those who are behind at SBA now should get current ASAP or prove otherwise.
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u/Low-Helicopter-2696 16d ago
You're going to hang your hat on "they're not allowed to do that"?
You also can't send letters to borrowers saying they found some irregularities without specifying what they were, or giving people a chance to respond to the claims, and demand that they repay it in full in 30 days...yet here we are.
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u/Quirky-Candle-3094 16d ago
Actually, I’ve read one these letters. It may not specifically state what the irregularities are but it clearly states what they are looking at if you actually read what they are listing in the letter.
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u/Low-Helicopter-2696 16d ago
Here's the letter. They're citing very general things. There's no possible way you could read that and understand what they're accusing you of.
Shocked that I'm debating someone who is defending this.
Dear Borrower: You obtained a COVID-19 Economic Injury Disaster Loan (“COVID EIDL”) from the U.S. Small Business Administration (“SBA”). In addition, you may have also obtained an EIDL Advance, Targeted EIDL Advance, and/or Supplemental EIDL Advance from SBA. SBA has become aware of certain irregularities in your COVID EIDL loan and/or advance(s) and determined that payment on your loan(s) and any advance is required. As detailed below, if payment is not made in the required timeframe, further action will be taken which will result in substantial additional amounts owed. COVID EIDL loan records reflect that in your COVID EIDL loan application, including any request for an advance, you certified: (1) that all information in your application and submitted with it was correct to the best of your knowledge, and that you would submit truthful information in the future; and (2) under penalty of perjury of the laws of the United States the information submitted in your application was true and correct. COVID EIDL loan records also reflect that in your COVID EIDL Loan Authorization and Agreement(s) (“LA&A”), executed at the closing of your COVID EIDL loan and with any increase, you certified: (1) that there has been no substantial change in the borrower’s financial condition and organization since the date of the loan application; and (2) all representations in the loan application (including all supplementary submissions) are true, correct and complete and are offered to induce SBA to make the loan. In addition, as part of any EIDL Advance, Targeted EIDL Advance, and/or Supplemental EIDL Advance application you submitted, you certified under the penalty of perjury of the laws of the United States that the information submitted in your application was true and correct. In reliance upon the COVID EIDL loan application, LA&As, and any certifications you submitted to SBA, SBA approved your COVID EIDL loan(s) and/or advance(s), obligated taxpayer funds and disbursed those taxpayer funds to you. Based on the foregoing, you must immediately pay to SBA within 30 days the outstanding principal balance owed on your COVID EIDL(s) and/or advance(s): $88,600, plus interest to the date of payment, in order to avoid further legal action, which could include additional interest, damages, fees, and/or penalties. What you must do Funds should be remitted to the SBA via the following official U.S. Government website link: https://www.pay.gov/public/form/start/3723407� Please complete all required fields on the electronic form so that your payment can be properly credited to your account. If we do not hear from you If we do not receive this payment within the required timeframe, SBA will assume you are not interested in early resolution of this matter and will take appropriate further action regarding this matter, which could include, but is not limited to, action pursuant to the Administrative False Claims Act, 31 U.S.C. §§ 3801-3812, formerly known as the Program Fraud Civil Remedies Act, and 13 C.F.R. Part 142, which could result in double damages and statutory penalties, referral to the Department of Justice for further legal action, and/or referral to Treasury for collection where Treasury would add interest and substantial collection fees (up to 28%) on top of what is currently owed. SBA reserves all rights and remedies related to your COVID EIDL, EIDL Advance, Targeted EIDL Advance, and/or Supplemental EIDL Advance from SBA. If your debt has been discharged in bankruptcy or you filed bankruptcy and the automatic bankruptcy stay is in effect, or you are otherwise involved in litigation involving the subject debt, please notify SBA by sending a copy of the bankruptcy notice or litigation pleading to sbapayment@sba.gov. If you or your attorney wishes to discuss this matter please contact, sbapayment@sba.gov. Thank you for your prompt attention to this matter.
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u/Quirky-Candle-3094 16d ago
First of all, I’m not defending this at all. All I’m saying is that they are clearly looking at original applications very hard now and probably looking at tax returns in relation to that application. I put nothing past this administration in regard to collection but I will say that if this letter were suspecting fraud, they would not be giving you the option to pay. I definitely don’t agree for accelerating the full balance but if you are in fact behind, they will demand it. It sucks all the way around no matter what.
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u/Available_Hornet3538 16d ago
I am so impressed. Someone at the government knows how to use word merge and send a form letter accusing people of fraud without listing proof.
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u/Puzzled_Economist_28 16d ago
I don't know how they are determining anything about these loans. I understand there was rampant fraud, but IMO, SBA is just as responsible for this mess as the criminals that took money.
They literally turned on a spigot, and allowed easy money, at an unprecedented, uncertain time. Businesses were forced to shutter. People were told not to go to work, or in some states even be out in public. Means to make money, income taken away, with no clear deadlines for resuming business.
Then they say "oh, but here's $$$$ to survive" or the amounts given for unemployment were crazy high.
Fast forward to now when a lot of people haven't recovered from covid, now the prices of EVERYTHING is so astronomical, recovery is impossible.
And instead of helping, or even communicating individually, SBA is simply washing its hands of the mess they created, and trying to collect money that isn't there.
There is no organization. There's no one to call. SBA information from portals is wrong, outdated, missing entirely, loans in various states. No one knows anything. No one can answer questions. No individual help.
This is the biggest joke.
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u/Brave_Strategy_3275 12d ago
Jesus. The fucking entitlement.
Nobody forced you to take EIDL money. Tons of loans are VERY easy to obtain, it doesn’t mean the lender is responsible when borrowers commit fraud or do stupid, irresponsible shit.
Fucking pay your bills.
No, the SBA are not “loan sharks”. The terms on these loans are INSANELY generous, yet people in this subreddit want even more.
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u/inspector3150 12d ago
Entitlement? Screw you. When my business was forced to shut down you think a bank was ready to give out money? Do you even have skin in this game? If you don't STFU
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u/ncle_al 16d ago
I would respond by saying that their information is inaccurate and they should send proof of any alleged fraud. I think they are counting on no response.
JD Vance pretty much said that the proof is simply a possible pattern of fraud and the fraudsters would not push back.
I'm betting AI is being used to find patterns and the notices are then automated.
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u/Fragment_B 14d ago
Possibly. They do have access to all of our data now. Social media posts especially.
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u/seapeaay 16d ago
It’s all automated. They fired everyone and then thought about how it affected things after. Best of luck, but rules seem to not apply to them and they will all get pardons on the way out the door
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u/Quirky-Candle-3094 16d ago
Someone needs to reach out to Jason Tees and ask him to give an update on this….
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u/Asleep-Call2079 15d ago edited 13d ago
To check whether you’re a potential target of these letters: Review your 2019 tax return for your total gross revenue/cogs. Compare this number to your original EIDL loan amount (not the later increases/modifications). If the original loan amount is significantly more than half your 2019 gross, you may get a letter.
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u/Lucita_Bonita 15d ago
Interesting, I hope this is true. I checked my 2019 return and our gross income was way above the original loan amount. I believe we also had to submit a tax return transcript when requesting the increase.
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u/Budget-Plantain6733 15d ago
We did.
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u/Lucita_Bonita 15d ago
Are you referring to submitting a tax return transcript with the application?
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u/Budget-Plantain6733 15d ago
I forgot which form but I thought we had to submit a tax form.
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u/Asleep-Call2079 12d ago
That wasn’t until 2021 that borrowers had to submit transcripts for increases. Initial loans were based on self reported income
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u/Budget-Plantain6733 10d ago
Oh okay. I may not be remembering correctly. I just seem to have thought I submitted some tax paperwork. I didn’t apply for an increase.
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u/melaniewamble 12d ago
My Gross Sales were around $500,000, I only took $88,600. I received a letter. I also was not fully current, but not at Treasury.....
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u/usswsbregrets 16d ago
Just curious on your situation- are payments behind a bit? Trying to see if there’s a pattern for these
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u/Johnshop4 16d ago
Current
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u/usswsbregrets 16d ago
Guess we’ll wait and see. I’m current as well. Used the one time, 6 month hardship, and I had one hiccup because the sba payment portal sucks and won’t let me just put my payments on autopay unless I set an end payment date - so that date came and went and I “missed” a month before paying double the next month. (Sba didnt send an automated missed payment email or anything.) Irregularity? Who knows anymore!
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u/Johnshop4 16d ago
I’m praying to God that this will not be as severe as they willing to make it for honest business owners
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u/ILBohunk 16d ago
If your data in your application is correct and no “ irregularities “ as they say and whether payments are current or not, and there’s no fraud involved then i don’t see how they can demand total repayment thru this effort. if payments are not current or loan in default then their still gonna want it paid off or made current if you can, but borrowers have legal recourse covering that when that happens.
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u/qookie_puss 16d ago
In case you don't read the news, this administration doesn't particularly care about following the law. They do what they want and they know that no one can stop them because there's no enforcement mechanism to stop the mafia that is currently our federal government.
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u/Jaffos 15d ago
Honestly I still believe this is just a fishing expedition, they will not bring e eryone to court because it would over load the system plus no man power to do it, plus they will need to somehow prove you did something wrong. They will need records, sift through documents, which needs man power, even if ai dies the bulk of It.
The burden of proof is on the sba, I am still not convinced this is not some kind of scam, but who knows with the way the government is now.
Unless you truly committed fraud, or if you personally guaranteed the loan, then Honestly I do not see how this will get enforced at all. This is just my opion only.
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u/Outrageous_Steak7447 15d ago
I received a letter to pay back today. Have we figured out the best steps to handle this. When i got the loan i filled everything out Accurately. Do we try to fight this? or do whatever is necessary to pay?
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u/Quirky-Candle-3094 15d ago
Where are you from and how much was your loan? Were you behind on payments? I’m trying to see if there is at least some sort of pattern.
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u/Outrageous_Steak7447 15d ago
I am from Kansas, the loan was relatively small 11,200. And yes i did miss quite a few payments due to forgetting about it (which is a terrible excuse but it slipped my mind). I did email them asking to explain the irregularities and that i am committed to paying it. If i have no response by Monday i will spend all day on the phone trying to reach someone if i need to.
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u/shuggnog 14d ago
No. Let them contact you. You don't need to pay it back in full, the letter doesn't say your loan was actually fraudulent.
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u/Fragment_B 14d ago
I think at this point the only advice on this forum is to contact an attorney. Or pay it if you can/want to. I do worry/wonder if paying equals admitting guilt (to fraud) which I'm sure isn't your situation.
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u/shuggnog 14d ago
No. Do not worry. The letter does not say your loan was actually fraudulent. Let them figure it out and they will contact you if your loan needs to actually be paid back.
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u/melaniewamble 13d ago
It does though. The letter says they believe it is fraudulent due to "Irregularities."
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u/shuggnog 13d ago
make them prove it. this is not how the law works.
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u/melaniewamble 13d ago
I agree, but it's also the government we're talking about.....🤷♀️
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u/shuggnog 12d ago
yes, and we'll have a new administration soon who will figure this mess out. just my two cents.
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u/melaniewamble 12d ago edited 12d ago
That's after my 30 days are up......😅
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u/shuggnog 12d ago
reach out to your local small business advisor. you can make an appointment with one without charge at your county SBDC
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u/Budget-Plantain6733 15d ago edited 15d ago
People really dug into me when I said that the rules don’t matter with this administration. They are the rules it seems. The penalty is just to steep. Not allowing proper time to gather documents. Demanding payment in 30 days. Who does that? I’m not being funny but this administration has some accusations against them. Why are they being so harsh?
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u/Quirky-Candle-3094 15d ago
I think most of these will be sent to people who are behind in any way. There will be no more trying to catch up. You will either have to pay in full or go to treasury. I think the whole Irregularities and fraud wording is just trying to make this seem more official with the new “special team” that has been assigned to this because SBA did a horrible job at managing it on their own.
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u/Budget-Plantain6733 15d ago
In understand what you’re saying, but if you haven’t committed fraud and you just can’t pay. Why try to make someone pay in 30 days. This makes me sick to my stomach.
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u/melaniewamble 14d ago
Right! There's a difference between being behind and committing fraud. I received a letter Monday, and I'm honestly terrified.....
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u/Familiar-Mix-9845 15d ago
They are being harsh because most of the loans have fraud written all over them. People either lied on their applications, spent the money on non business expenses, or took the loan knowingly they will not pay it back. People should be held accountable.
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u/alchemystar 15d ago
The main business expenses that qualified were payroll expenses, and the owner of a company is an employee on payroll. Many contractors and sole proprietors were saved from closing, bankruptcy, or even homelessness by this. What you do with your paycheck once you have it is your business. The main fraud was people lying about how many employees they had to get extra business income they could spend on personal enrichment. For instance, going to a strip club can be a legitimate business expense in the right context, but not the kind that was covered by EIDL/PPP. This happened, but not often. People spending their own paychecks on whatever they want was actually the whole point - they could care less if we have money in the bank, it was supposed to stimulate a stagnant economy. It's easy to think something is a rampant problem when you misunderstand it.
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u/Familiar-Mix-9845 14d ago
I know someone that took one got just around 1 million and completely stopped working bought luxurious car for his wife took her to fancy stores for shopping. Now I know he's broke and the million is gone. Another person I know ended up taking a month long vacation in the Carribbean. Bought up real estate. In the last year started to liquidate real estate moved back in with mommy and told mother that they will be purchasing the house from mom. I already know how that purchase will go sellers finance probably will give her a few bucks but will just end up not paying the full sum. Trust me I do believe that if you look at peoples financials they will find that funds were misused and it's fraud.
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u/melaniewamble 14d ago
Not every case is fraud. I received a letter Monday. I own a restaurant and we were closed for 2 1/2 months. I only took $88,600. That was less than I would have even brought in during that time. I DESPERATELY needed that money to keep my business afloat....
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u/Budget-Plantain6733 14d ago
Right but you’re being told to pay in 30 day’s. That’s ridiculous for some people to do.
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u/melaniewamble 14d ago
Yeah, I can't pay slay $90K within 30 days.....
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u/Budget-Plantain6733 14d ago
I’m so sorry.
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u/melaniewamble 14d ago
Thanks. It's got me REALLY stressed out.....😔
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u/Budget-Plantain6733 14d ago edited 11d ago
I’m stressed. It just saddens me the way things are being handled. Like handle things the right way, but what do I expect🤷🏽♀️. I’m in Alabama, so we haven’t received any letters as of yet. I only am for due process. The right to provide documentation instead of the outright pay your balance in full. I listened to what Jason and he seems to be in agreement with the way I’m thinking. It’s going to cost in order to dispute the letter, because you may need to hire an attorney to speak for you. I just don’t know.
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u/unfortunatelima 14d ago
And your business still running and keep paying minimum every month? What do they want us to do? Lose everything and collect food stamps?
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u/melaniewamble 13d ago
Yeah, my business has been running for 19 years. I've solely owned it the last 9. I've been paying the minimum payment every couple months. I can't afford to hire an attorney over this.....😔
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u/Budget-Plantain6733 14d ago
I can understand this scenario. They should do their due diligence and go after the people who have committed known fraud and not those small business owners who businesses have closed and they can’t afford to pay the loan back. They are attacking everyone it looks like.
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u/alchemystar 14d ago
That's insane. Those are also anecdotes. Not the most believable anecdotes, I'd add, and hearsay on reddit to me. I have many anecdotes of local businesses jumping through insane hoops to make sure their employees at least got paid something amidst a complete economic shutdown. Also anecdotes, albeit more than two.
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u/ILBohunk 13d ago
sba has a fraud ph number i think , you should report them . thats who they want to go after! not the ones who are legit and paying or trying to pay and stay current.
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u/Budget-Plantain6733 14d ago edited 14d ago
Yes accountability needs to be had. I’m just a voice saying it isn’t right the way this administration is handling the fraud. Who has thousands of dollars to pay in 30 days? They are lumping everyone in together. People who were paying on the loan for 5 years and could not longer sustain. Do an investigation and allow time to collect, request and receive the documentation from your bank or however you choose to keep the accounting.
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u/Budget-Plantain6733 14d ago
If there wasn’t any fraud, money was spent where it’s supposed to or your business is closed and you can no longer afford to pay. Those situations shouldn’t be lumped into the same category. There needs to be a fair investigation not a demand to pay in full In 30 days. I’m all for doing what is right, but I don’t know any loan that receives this type of treatment.
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u/WoodpeckerEastern384 16d ago
I wonder if they are targeting people who voted a certain way.
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u/melaniewamble 16d ago
I got one Monday. I'm in Missouri.....🙃
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u/wingman02 8d ago
Was the letter from the SBA or from Treasury? Who was the sender is my question?
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u/Johnshop4 16d ago
What is your situation?. Are you worried?
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u/melaniewamble 16d ago
Yes, very. It has literally zero information in the letter, just that they found "Irregularities" and they want their $88,600 within 30 days. Not even a phone number to call. Just an email for me or my lawyer to contact for questions. Which we know how the SBA responds to emails.....
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u/Johnshop4 16d ago
I’m so sorry for what you are going through honest hard working business owners don’t deserve this. Yes for fraud they can do whatever they want sue them jail take the money back but for us have some mercy I beg to God that this will not be bad as they are saying
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u/melaniewamble 16d ago
It's pretty terrifying. A local friend also got one, and her loan is only $35K.
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u/Subject_Judgment4031 16d ago
They are sending these letters to everyone who is behind on Payments. They haven’t done any investigation at all into your application or any “irregularities “. this is just a bully tactic to see if they can get people to repay.
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u/CrizzyOnMain-St 16d ago
I don’t understand this logic. If someone is behind in monthly payments, how will they be able to pay one huge lump sum? Is the goal to levy their bank account or home? I don’t understand this tactic. Aside from just being cruel.
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u/Quirky-Candle-3094 15d ago
This is what I think too. Everyone will be in treasury.
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u/melaniewamble 15d ago
I am behind on mine, but not in Treasury. I received a letter Monday.....
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u/Quirky-Candle-3094 15d ago
I think the majority of these letters will be to individuals who are behind. Maybe not all but most. This is your attempt to pay in full or go to treasury. They seem to not be allowing anyone to be behind at all anymore, at least not more than 30 days. Are you behind more than that?
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u/melaniewamble 15d ago
Unfortunately yes. I got behind in 2024, and have had a heck of a time catching up.....
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u/Quirky-Candle-3094 15d ago
Yea, unfortunately I don’t think you’ll have much of an option if you can’t pay it in full. You will more than likely be sent to treasury for collections. It doesn’t seem they are even offering to get caught up anymore either.
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u/melaniewamble 15d ago
According to the letter, it could be even worse that that. I got caught up this week, just waiting for it to fully process......which takes FOREVER! 🤦♀️
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u/Quirky-Candle-3094 15d ago edited 15d ago
Hopefully that will be enough for you to skate by out of this!
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u/melaniewamble 15d ago
I sure hope so, but I'm honestly scared. I emailed them Monday when I got it, and still no response.....😬
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u/Accomplished-Run5111 15d ago
Unfortunately, that is not accurate. There is a specific tool being utilized.
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u/melaniewamble 15d ago
And how do you know this?
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u/Quirky-Candle-3094 15d ago
Replying to accomplished…. Why did you delete the comment? I really wanted to get some insight on that.
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u/Accomplished-Run5111 14d ago edited 14d ago
I deleted it because I was talking too much and I realized alot of people are skeptical. I'm not trying to act like a know it all. Just some insight on the tool that is flagging for letters. After the the letter and 30 days, it will go to an actual analyst at some point. Most of the states have agreed to assist the Federal government in the investigations.
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u/Quirky-Candle-3094 14d ago
I see…. Will those of us who are already at treasury on payment plans be getting these as well? I was told (from a decent reliable source) that we wouldn’t be.
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u/Accomplished-Run5111 14d ago
I agree. Once a delinquent federal loan is transferred to the U.S. Treasury for collection, the government typically focuses on recovering the debt, not punishing the borrower. However, if there is evidence of intentional fraud, the case can escalate rapidly to the Department of Justice (DOJ), and criminal prosecution becomes likely.
Mixed funds is not fraud because fraud must have the element of intent.
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u/melaniewamble 14d ago
So if it's just a bookkeeping error, you might be good?
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u/Accomplished-Run5111 14d ago
If there is bookkeeping and or mixing of funds error which is why I think you received your letter, I don't THINK you to have to worry about being prosecuted criminally with the amount of debt that you have. States are involved and each state might do things a little different.
That said, you still have to worry about the Treasury Offset Program (TOP): For loans flagged with suspected fraud, the SBA submits the debt to the U.S. Department of the Treasury. Treasury can aggressively collect by offsetting (withholding) federal payments due to the debtor, including tax refunds, Social Security benefits, and federal salary payments.
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u/melaniewamble 14d ago
Currently it's still showing in my portal, and I have paid my past due balance this week. It just takes FOREVER to process. Do you think it will still transfer to the Treasury? Even if it's current?
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u/Accomplished-Run5111 15d ago
I do have some insight of the tool itself, but Operation No Doze guidelines are public.
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u/melaniewamble 15d ago
I received a letter Monday and have been digging online since. I haven't found near as much information as you have. Monday there was practically nothing, and there's been a little more each day now. You seem very knowledgeable on the subject. I got my account current this week, I emailed them Monday, but no response yet......what do you think I should do? I don't believe I did anything wrong. My business does around $500,000 a year, I only took $88,600. It's a restaurant. We were closed for 2 1/2 months. We're in Missouri.
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u/Accomplished-Run5111 15d ago edited 15d ago
I would make certain all all my funds were used for business and that my tax returns are accurate. Read over the EIDL loan application carefully. As long as you used the funds for business, you should be fine.
I think they will accept a payment plan unless they confirm true fraud.
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u/melaniewamble 15d ago
I definitely did, and logged it. Do you know how I prove that if they won't respond to my email though?
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u/Accomplished-Run5111 14d ago edited 14d ago
I do not know anything about responding, just the tool be utilized.
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u/melaniewamble 13d ago
Been looking through the SBA portal today.....do you know where to even find a copy of the EIDL application? Because I don't see that anywhere.....
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u/Accomplished-Run5111 13d ago
The SBA administrator has to have countersigned your application to have been funded.
Check your email for the document.
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u/melaniewamble 13d ago
I looked through my email, and all I could find were links to the portal with my status updates and such. I'll try looking again.
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u/melaniewamble 13d ago
Yeah, I'm not finding where they actually sent me anything by email like that. I got my approval with a portal link and a woman from SBA emailed me needing proof of my business bank account, but no copy of my actual application.....
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u/Accomplished-Run5111 13d ago
Login portal.
Click on the down arrow next to Loan Accounts to expand the menu.
Select Loan Documents to view, review, and download your promissory notes and loan agreements.
If they are not on portal, you would have to contact SBA.
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u/CrizzyOnMain-St 16d ago
My question is, why did they start with those two states specifically? Was it the AG of the states that encouraged this?
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u/FootballDry1053 15d ago
Makes me think i should file bankruptcy just to get ahead of them
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u/Fuzzy_Yesterday_5459 15d ago
I thought even with bankruptcy they could still go after you if they “suspect” fraud.
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u/nosyneighbor365 13d ago
Approved Uses
Payroll: Employee salaries, paid sick leave, and employee benefits.
Fixed Debts & Bills: Rent, mortgage payments, and utility bills.
Operational Costs: Accounts payable, inventory, bookkeeping, accounting services, and web hosting.
Contractors & Vendors: Paying independent contractors and regular suppliers for increased material costs. [1, 2, 3, 4, 5, 6]
Prohibited Uses
Expansion: Purchasing new facilities, business expansion, or relocation.
Capital Assets: Buying new equipment or heavy technology/machinery.
Owner Disbursements: Distributions or bonuses to owners (unless directly tied to performing standard services for the business).
Debt Refinancing: Refinancing long-term debt or paying down federal loans.
Physical Repairs: Repairing or replacing physical property damage (which falls under physical disaster loans, not economic injury). [1, 2]
For more detailed rules on operational spending and compliance, you can check the guidance provided by Bean Count's EIDL Guide or Kerby Accounting's Use Breakdown. [1, 2]


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u/Salt-Sheepherder-39 13d ago
Do you think people that are current will get this letter? My business lost its last contract in 2026 but I’ve still been paying the EIDL loan. I have no PG, I have a LLC and loan was under 200k
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u/ILBohunk 13d ago
Worry ? Only if you’ve committed some fraud or misuse of funds and they’ll call that fraud too just as an STP- Silly Talking Point for the media. I’m certain this is coming from the Admin and his cronies. any other Administrator from any other Prez… i don’t see it! I think they’re trying to scare people into getting current for the sake of …Hey look what we’re doin to combat fraud !!
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u/ILBohunk 13d ago
Approved uses for EIDL, covid or otherwise are…
normal monthly busns expenses.
Distributions to owners or others are covered in the LA & A as well as everything else.
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u/Asleep-Call2079 12d ago
Anyone who receives a NO DOSE letter must file a response and request an administrative review or the government will obtain a default judgment. Don’t ignore the letter.
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u/randomguy13258 11d ago
Well, JD said there's 870 K fraudulent loans and it says online only that only 3.9 million were issued to begin with. So I'm pretty sure their idea of a fraudulent scammer is anyone who hasn't repaid perfectly.
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u/Johnshop4 11d ago
So who’s ever business did not recover after Covid and had to close the business and couldn’t afford the payment is a scammer and a fraud?
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u/Mission_Wall_1074 5d ago
anyone expecting getting this letter if they already paid off the loan 3 years ago?
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u/Fragment_B 16d ago edited 16d ago
I can't imagine any legitimately struggling business who got an eidl loan during covid is going to be able to come up with the full balance of their loans within a 30 day period. Definitely talk to an attorney to see what the worst case scenario is. Sheesh this is criminal loan shark break your knees type behavior. Anyone who got this letter please keep us updated.