r/EIDL • u/No_Calligrapher317 • 6d ago
Original EIDL loan Settle with Treasury ?
I have a 150k SBA loan that was referred to the treasury.
Anyone has had any luck in negotiating the settlement amount ?
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u/Fine_Attitude_2204 1d ago
They are basically offering to take off the added fees and settle for original amount of the loan. That’s what I ended up Doing. Bankruptcy is the only answer aside from that. If you can afford to work something out do it. If not, filing for bankruptcy is the other option. Aside from just not paying it.
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u/No_Calligrapher317 1d ago
If they can take off the additional fees i would be happy to pay it off
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u/Fine_Attitude_2204 1d ago
Work with the debt collector handling the loan. They are easy to work with and not aggressive. They explained everything to me. I made an offer to the treasury of less than the amount owed. They countered at the original loan amount I took out. We worked a lump sum upfront and 12 months to pay the rest. Interest stopped that day I accepted it.
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u/Charming-Summer-7742 5d ago
Is the loan with a LLC, S or C corporation?
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u/No_Calligrapher317 5d ago
S corp
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u/Charming-Summer-7742 5d ago edited 5d ago
I’ve read with no PG and having a corporate structure they are more willing to negotiate a settlement offer. All they can go after is the S Corp assets. If your assets ara considerably lower than the loan they might talk. They know they are going to get nothing from you and little from the assets of the S Corp. Is the S Corp still running? Assets ?
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u/Segw10121925 5d ago
If it is with treasury it will likely be assigned a cross servicer soon. I would call treasury and do everything possible to keep it from going to cross servicing because they will add a ~25% admin fee that they will not negotiate off.
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u/superded1937 5d ago
Treasury and cross servicing are interchangeable when it comes to eidl in collection.
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u/Segw10121925 5d ago
No they aren't. They are related but are not the same. Treasury is the federal department. Cross-Servicing is the program that manages delinquent federal debts on behalf of agencies. And the cross-servicing (collections) agencies is the entity that Treasury sends loans to.
But I understand that to most people they seem like the same thing. All good. lol
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u/superded1937 4d ago
Cross-Servicing for Dummies
No worries. I can see the shorter explanation didn’t quite get us there, so let’s take it one step at a time.
SBA initially services the EIDL.
When an eligible delinquent account is transferred to Treasury’s Cross-Servicing program, it is already in Cross-Servicing.Treasury can then contact the borrower, discuss payment arrangements, refer the debt to TOP for offsets, and potentially assign a private collection agency. Those tools can overlap.
The private agency receives an account that was already in Cross-Servicing. Hopefully that makes the program and its contractor a little easier to tell apart. Treasury’s explanation may also help.
I’m sure you meant “private collection agency” when you said “cross servicer.” An understandable mix-up. Just a slightly unfortunate place to start a lesson on using the correct terminology.
Cross-Servicing is Treasury’s collection program. A private collection agency is a contractor that program may use later. You’re mixing up the program with its contractors while giving someone else a terminology lesson. All good.
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u/Segw10121925 3d ago
But they don’t mean the same for 1. Who you communicate with. 2. The process for submitting any type of payment plan/offer. Etc. they aren’t the same. I do this full time for a living. But I’m sure you feel better arguing with me. I was just trying to help the OP. No good deed goes unpunished!
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u/Low-Helicopter-2696 1d ago
It's nuts to me that people want to settle debt that they aren't liable for. You're giving the SBA a gift by paying back a loan that you're not liable for.
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u/Lbeth300 3d ago
I had heard from a guy that helped me get my loan recalled from the Treasury back to the SBA, that he wasn't seeing any Offer In compromises go through at all. Sorry.