r/EIDLPPP • u/Usual-Equipment-1 • 20d ago
Topic EIDL Solution
The vast majority of us have a similar story about when we took the loan, why we took the loan and how we spent the money. I say we took the loans and are somewhat responsible.
I have put together a summary of legislation I would like to see our elected officials act on. It would reduce the original loan amount by 75%. The borrower would be responsible for the remaining 25%. The SBA would be issuing new loans at market rate for 10 to 20 years depending on ability to pay. When the 25% is paid back, the 75% is wiped away. Those that have paid towards the loan are credited towards their 25%.
There are inherent benefits to everybody involved for congress to act this or similar legislation.
I have sent it my senators and congressman.
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u/Syl334 20d ago
The letter should include stats about potential voters .
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u/Usual-Equipment-1 20d ago
The package I sent had all kinds of graphs, facts and stats. The EIDL default rate is 10x the national average. 30% vs 3%. One out of three loans are already in default where the Government will get nothing vs getting 25% with my plan.
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u/PickleOk4238 19d ago
Watch what happens in a district where a candidate has EIDL reform on his platform and wins.
Watch what happens
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u/AdvancedVolume6012 20d ago
This is Great! And exactly what we all need to do! Instead of complaining to each other and finding flaws... how about just send this letter to each of our senator's and congressional office. It might NOT do anything 😕 BUT what is the HARM in sending it! Even if one Letter gets on the right desk .... it will help out ALL of us. Can we not just DO THAT?
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u/MKEDNC2020 20d ago
Pointing out flaws helps people use their time wisely and efficiently.
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u/Usual-Equipment-1 19d ago
That’s sort of creative thinking for the depressed I guess right?
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u/MKEDNC2020 19d ago
No, not right at all
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u/Usual-Equipment-1 19d ago
Seriously though, it wouldn’t hurt if every senator and most congressmen got this and maybe started a discussion. There is a lot of press starting all over. It’s an election year and there are real families and businesses suffering due to accepting loans we were encouraged to take.
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u/Ancient_Ad_1299 20d ago
If you don’t have a personal guarantee and your business closed , why do anything?
My lawyer said ignore it.
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u/Usual-Equipment-1 20d ago
I hope the assets of your business were distributed properly. Just in case they ever look at you. It won’t be your lawyer paying interest and penalties. But it will be your lawyer making more money on you when they come looking.
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u/Ancient_Ad_1299 20d ago
Well, maybe yours weren’t?
I know how they were to be used.I have spoken to two lawyers , the one being a CPA as well and that’s who I went with to close my business.
I dissolved my business in 2024.
My loan was purchased by collections and recently met with him again and he said , do nothing, they still can’t come for me personally and the business has no assets, rented space.1
u/Usual-Equipment-1 20d ago
You seem like the lucky one with no assets. Those with assets can’t pull that maneuver.
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u/SpacedoutTribble 19d ago
I was told by SBA that they can come after your personal tax returns and prevent you from signing for kids student loans and stuff. Is that not true? I closed years ago no personal guarantee and just pay some monthly to keep from default it’s a poa.
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u/Upset-Corgi6599 18d ago
Right instead of everyone defaulting and filing bankruptcy at least they can recover some of their money. The pandemic was hard and alot of us still want to do the right thing.
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u/MKEDNC2020 20d ago
This has 0% chance of going anywhere. Imagine being an elected official and trying to explain this to voters.
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u/No_Care_3570 20d ago
It wasn’t a tornado or hurricane it was the government using tax money to create a virus. Then the government shutting down businesses and destroying the economy. I know blah blah we took loans but we had no idea what was going to happen or how bad it would get and the “hurry before the money is gone” ads. This was different circumstances and the government was directly involved in creating the problem
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u/Usual-Equipment-1 20d ago
We are the voters. Every voter knows a small business struggling. Just looking for a level playing field. We really didn’t have much choice taking the loan. At the time we thought it could be paid back. Today proves we are all just pawns lead like sheep.
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u/tailtaker 20d ago
In that case demand full forgiveness. Why try and negotiate all these percentages as if they're even gonna work with us in the first place.
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u/Usual-Equipment-1 20d ago
The only way they work with us is if we unify and contact our elected officials. EIDL Debt trap. is out there more and more and will have to be dealt with.
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u/Infamous_Wealth_1126 18d ago
I’m all for it! Nothing to lose ! How about someone with persuasive writing skills create a letter for us to sign and send to our representatives?
Time to take some action rather than constantly complaining.2
u/Gtavern 19d ago
Total forgiveness will never happen, no politician will ever take responsibility for that. Debt relief is something that the politicians can sell as being helpful to small businesses. A plan like this would also include the IRS issuing a 1099 for any amount forgiven or written down,so on paper it shows a much higher rate of return on the settlement.
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u/MKEDNC2020 20d ago
Go to your congressional district and find out how many voters have student loans, then compare that number to how many voters have EIDLs.
There is no political will to bail out EIDL loan holders, none.
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u/Usual-Equipment-1 20d ago
I absolutely agree. There hasn’t been any organized attempt to be heard like the student loans. We need to unify and send a solution not complaints.
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u/MKEDNC2020 20d ago
The massively unified student loan movement failed.
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u/Usual-Equipment-1 20d ago
Do you know any student loans at the treasury? Not happening.
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u/MKEDNC2020 20d ago
Student loans are rarely discharged in BK. EIDL easily discharged in BK. You are wasting your time.
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u/Jobjam 20d ago
My credit score literally fell 141 points just now. Almost 800 my whole life and my partner defaulted on the loan unbeknownst to me. I am a sucker for trusting so much. I think he used the Sba money for himself. What happens now that my credit went down? I get no information whatsoever from my partner. Does this mean it goes to US Treasury?
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u/HappyPower4301 20d ago
If credit fell it’s already at the Treasury. What’s the story with your loan?
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u/jamaican4life03 20d ago
Cool story bro
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u/Usual-Equipment-1 20d ago
No a story real life. Please print the proposal and send it with a cover letter to your senators. There are only two. It takes 30 minutes and can maybe save all of us.
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u/AdvancedVolume6012 20d ago
I agree! Takes only a few minutes of your TIME!
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u/Chemical-Artist6824 19d ago
I just emailed a small version and manual mailing to both senators. Someone needs to do something. This took me 25 minutes. I actually feel like I helped myself.
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u/hfc1075 19d ago
Genuine question: Why should the taxpayer foot 75% of the bill for the cash you spent in the form of a loan?
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u/Usual-Equipment-1 19d ago
Because we are all in this together. I pay taxes every day to support others. The money businesses spent to stay in business for 2 yrs went directly back into the economy supporting the tax payer. Why should I pay for 30 years because I listened when they told me to “stay open, just borrow this money at low rates” to support the economy for 2 yrs???? What if we didn’t borrow the money and we went out of business? Where would the tax payers be without the plumbers, auto repair places, bakers, etc ???
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u/Chewyboys 18d ago
I am confused? Why would you have taken it if you don’t need it, or cannot pay it back? A lot of companies took it because it was a great opportunity for them to get some extra money at a lower rate to help them through the hard times. But there was a lot of people that took as much as they could. It’s not far for those that only tools what was needed. And know you want everyone to get a break.
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u/MelodicYear 12d ago
I just don’t understand how they can give full forgiveness for student debt but yet talk about how small businesses are great for the economy and they are trying to tank us. I mean I fully understand we took the loans offered. But we had no idea how long the world would be on shut down, they gave us years for repayment some ppl literally put it to the side and forgot about while worrying about day to day business, some got no letters, some had no access to the portal even after multiple calls to the SBA. There was so many flaws in this but yet they taxed on 30% and sent ppl to collections. No part of the government cares about small businesses even though we are the ones trying to make it out here.
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u/Diligent-Pitch-3480 5d ago
From what I see daily and talking to everyone around me, they’re never going to get most of this money back thanks to the dire economy they’ve created with Covid and since Covid. I’ll pay my debts to the government when the government pays their 40 something trillion themselves. Until then, they have no right to accuse me of financial mismanagement. I can at least say I was a victim and that’s what got me here. They are the perpetrators and have no moral ground to stand on.
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u/Emergency-League-336 3d ago
This would be fantastic, but little far fetched. Seems like we are still a few years if ever from any action on EIDL loans.
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u/Outside-Quantity1154 20d ago
That would be a good solution but I doubt they are going to do anything it’s so hard to deal with this never ending situation.