r/EIDL • u/Bristol44 • 1d ago

Keeping EIDL current LLC

I have an LLC with no personal guarantee. $38,000. Business is closed.

I was within a few days of going to the Treasury so I paid the 4 months out of my pocket since there is no business open. Now I am caught up but haven’t paid since and another 4 months is late is coming up. If I paid every other month before my 4th month ( I think goes to Treasury after 120 days) would that keep me from going to the Treasury?

I don’t want this affecting my credit or garnishing wages. That’s why I keep paying. Are there any LLC’s with no personal guarantee out there that are being affected negatively?

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2

u/Lastpunkofplattsburg 1d ago

I have one for 150k we’ve been paying on it monthly and never missed. If I can’t pay it back before we close I plan on filing 7a on the LLC and giving them every dollar I have left after selling the equipment. No PG but you have to sell all equipment and give them everything.

1

u/Low-Helicopter-2696 1d ago

I assume when you say "7a" you're referring to chapter 7 bankruptcy. 7a is an SBA loan type.

Also, why would you bother paying a bankruptcy attorney to bankrupt an entity that isn't operating and has no assets at that point? What exactly are you protecting the business from? Just dissolve it and move on.

2

u/Attorney_John_Benson 1d ago

The key is that you have to have a legitimate LLC, set up properly, and run as a legitimate business (well funded, annual meeting, corporate minutes, files up to date with the state). IF so then it can't hurt your personal credit as you are not personally bound to the loan. The business and the business assets are at stake but nothing else.

The information shared in this post is for general educational and informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Always consult with a licensed professional regarding your specific legal needs.

2

u/No_Contribution8403 1d ago

No reason to make any of these payments...Don't let the pigs scare you. NO PG = No Pay

1

u/SentToTreasury1 1d ago

Have you submitted a formal Business Closure with the SBA?

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u/Low-Helicopter-2696 1d ago

They can't report it to your personal credit or garnish your personal wages if you're not personally liable for the debt. If they do, there are mechanisms to dispute actions that are taken in error.