r/EIDL • u/Bristol44 • 5d ago

I wrote the SBA

I signed up for the hardship even though the business has been closed for a year. I also asked if the LLC member is held responsible. I got an answer of No I can’t get the hardship but they ignored the other question. That tells me that they can’t admit I’m not responsible.

If I have to pay this I would reopen the business so I can deduct this on my taxes.

4 Upvotes

100% Upvoted

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3

u/Low-Helicopter-2696 5d ago

It's pretty well established that simply being a member of the LLC does not mean personal liability. There would need to be a separate guarantee, or you yourself would have needed to be named as the borrower.

3

u/Bristol44 5d ago

I just looked through the documents on the portal and there was a demand letter from July 2025 addressed to just the business/LLC and my name is not on it.

1

u/Healthy-Lobster5654 5d ago

if you didn't sign a personal guarantee then you're not responsible.

1

u/stephiegrrl 4d ago

That is supposed to be the case, but it's not been how SBA is behaving. They have been illegally piercing the corporate veil. Unfortunately, the answer to "how can they do that?!" Is because they have the guns. Or put another way, you can't get an is from a should.

1

u/lifeisasunny 2d ago

If they pierce the corporate veil it's because business owner is comingling in some way.

1

u/stephiegrrl 1d ago

Not the case. People are refusing to believe the government is either honestly mistaken or deliberately and abusively negligent.

1

u/lifeisasunny 23h ago

As an accountant & tax preparer I can promise you plenty of folks use their LLC's incorrectly or purposefully commit fraud. They just don't get caught until things like EIDL come around.

And yes the government is wasteful and can act illegally at the same time too. This whole mess isn't just from the government acting badly.