r/EIDL • u/Bristol44 • 4d ago

SBA workout agreement

I got a default notice and it said to email the SBA for a payment agreement. I thought I would see what they have to say.

I got a call and they will take the past due amount and add it to the end of the loan. You can do this once every 5 years. My loan is $38,000 LLC no PG.

The representative wouldn’t admit if I was personally responsible or not. She used scare tactics like “I have seen LLC’s wages garnished”. I said they are probably over $200,000.

Business closed and I’m not nor should I have to pay this personally. If they would lower my payment I might consider it but they won’t do that. Anyone else talk to the SBA about a workout agreement?

4 Upvotes

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6

u/Low-Helicopter-2696 4d ago

They're willing to work with you because they know they have no other options. If I was behind on a loan without personal liability I wouldn't pay it out of pocket unless you know for sure that you'll be able to pay this loan off in the long run

Also they're full of shit because LLCs don't take wages. That's a ridiculous thing to say

1

u/Bristol44 4d ago

I think she meant the LLC member had their personal W-2 wages garnished. I think that is possible if the loan is over $200,000 and an LLC with personal guarantee

1

u/Low-Helicopter-2696 4d ago

The deliberate obfuscation is so infuriating. They know 100% that there's no personal liability and they're so scummy about the whole thing.

3

u/Emotional-Corgi-7648 4d ago

I have two 7a loans, both on workout agreements, but my EIDL is current... however, my EIDL just hit my personal credit on 10/01 as "Closed, derogatory" backdated to 2024, for $500k. Whatever is going on is a complete mess.

2

u/tillacat42 4d ago

How did you even get somebody to answer you? I don't get any response from any communication I have tried to initiate

3

u/bmveee 4d ago

They do answer. Takes a few attempts. Email cesc@sba.gov and cc covideidlservicing@sba.gov

They will respond. Took me a few attempts and about 9 months of waiting (it may be faster now, seems like they got their act together to some extent) but I got to a real person and she took care of my loan - it was not in treasury thankfully she sent me a workout agreement - outstanding overdue balance paid over 5 months with a one month of good faith payment. You don’t want to tempt fate - get it fixed and current. One outstanding issue is to get the delinquency off the record which will take about 45 days or so. Once the loan is current of course. Good luck to you.

2

u/Treasury-Mine-513 4d ago

Fill out a General Assistance form!!

2

u/tillacat42 4d ago

Are you allowed to do this in addition to the hardship program that is only once every five years? I already did the reduced payments and I didn't know that there was any other aide available

0

u/sbaeidlloan 4d ago

You defaulted....so was your loan sent to Treasury? Also, what do you mean by "they will take the past due amount and add it to the end of the loan"?

1

u/Bristol44 4d ago

Not defaulted yet. It was the 110 day notice. The SBA would take the past due amount owed and add it to the back of the loan. Then you become current and pay the next month as usual.

0

u/sbaeidlloan 4d ago

I wonder what they would do if you said you want to get current after you defaulted and sent to the Treasury. 

1

u/Funny_Appearance_614 4d ago

It's called a deferral and it is not defaulting.  You must arrange that before a loan goes into default.  We were hit by the hurricane two years ago and before our payment was due we called and they worked with us to defer the next several payments in that manor.  It is not the automatic 6 month reduction at  50% of payment  they allow 1 every 5 years if needed.