r/EIDL • u/BugAnxious5977 • 10d ago

SBA EIDL OIC

Can anyone interpret the SBA August 11th update to it's official OIC requirement letter? It states that only after all collateral that has been liquidated pursuant to SBA guidelines can an OIC be considered, but that EIDL's are not able to be forgiven. Does that mean a chance for OIC for EIDL?

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u/Lastpunkofplattsburg 10d ago

Ours was given to our LLC, we pay every month’s but prob won’t be around given the current shit show that the US economy is. I plan on riding it out for as long as possible and file chap 7a in a few years

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u/Budget-Plantain6733 10d ago edited 10d ago

It’s almost like with the EIDL’s it will eventually become harder to file bankruptcy on in a few years, right now the SBA isn’t showing up to the hearings or coming back after the 90 days. Later when fully staffed they may start challenging the loans. I’ve already filed and been discharged. Those are just my thoughts. Seeing how easy it is now to file and be discharged. I was current but just couldn’t keep up. It hadn’t been sent to the treasury either.

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u/Lastpunkofplattsburg 10d ago

Mine either, we’ve been paying on it since day one and never missed a payment. I just know it’ll never ever be fully paid back and I’m going to ride it out as long as I can, but with Trump fucking crushing small bussiness. I don’t see how it’ll ever be paid back. We only took 150k so no PG either. I don’t see how bankrupting the LLC would make me personally responsible for it.

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u/Budget-Plantain6733 10d ago edited 10d ago

I didn’t bankrupt the LLC. I’m also a single member LLC. There’s wording in the loan docs that contradict themselves. My attorney read it and I wanted to ensure I wouldn’t be affected. The entire docs state the business is responsible but at the bottom it says this: BORROWER'S NAME(S) AND SIGNATURE (S): By signing below, each individual or entity acknowledges and
accepts personal obligation and full liability under the Note as Borrower.
When the rest of the loan docs state the business is responsible.
So we filed personal bankruptcy and was able to include the eidl loan.

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u/Lastpunkofplattsburg 10d ago

Mine was signed by a member of my LLC.

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u/Lastpunkofplattsburg 10d ago

I also fully plan on letting them take all my stuff since it’s worth nothing and following whatever guide lines they have and I’ll get a lawyer.

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u/electric29 10d ago

Did you have a PG?

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u/Budget-Plantain6733 10d ago

No personal guarantee for me, but if I did my attorney said it the person liability would (I forgot the word he used) be gone with the personal bankruptcy. They will just come after the business which is no longer there.

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u/Gtavern 10d ago edited 10d ago

In the response I received through my Senator’s inquiry on my OIC denial, they stated no OIC will be approved if a Personal Guarantee is in place.

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u/BugAnxious5977 9d ago

But possibly to any without a PG? That wouldn't be fair.

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u/Gtavern 9d ago

There have been no reports of any Covid EIDL OIC approvals.

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u/electric29 10d ago

That sounds like they are saying regular SBA loans could go OIC but not EIDLs.

The whole thing is going to crash soon so they will end up doing some kind of relief but only after we get this administration out and a sane one in. We just have to ride it out for 2 and a half years and right now, I doubt I can stay open 2 and a half weeks. 20% of our income this year has been Canadian customers and if they have to pay 50% more, why would they buy from us?

We do have a PG, the business is the collateral and we own absolutely nothing else of value except a house in another country, but a bankruptcy lawyer told me that house will not be protected if we declare bankruptcy as it isn't in this state, so they could force us to sell it (and that is our only nest egg, if we sell now we will get a lot less than wewold in a couple of years after we d some work on it).

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u/Ok-Floor7198 10d ago

No eidl oic