I have a couple of clients who have taken EIDL funds to weather the tide and are now regretting those choices.
One needs to close; it has been hemorrhaging cash since I started working with them. They have thrown their EIDL Funds and all of their savings into the business at this point.
The other client is winding down their business, only keeping it open to make the EIDL payments.
So, to assist them, I called the SBA to find out what their options are. I was seeing too much conflicting information and nonsense on the internet.
I was amazed on how quickly I got someone to answer the phone. I have become accustomed to the ever long IRS wait times…
The representative answered immediately; then I was told that there is no forgiveness, that EIDL loans are not forgivable. Complete collection of the funds are expected, along with the interest.
There are hardship options, and each party will need to call and discuss options with them. Which one client did. They were also amazed at how quickly they got a person on the phone.
The only hardship option seems to be that they will lower your payment to 10% of what you should be paying each month for a year basically.
So, it seems that all the talk of walking away from EIDL loans may not be reliable. Which makes sense, there is enough fraud out there as it is with PPP and ERC.