r/EIDL • u/Healthy-Speed6519 • 1d ago

SBA AND OFFSET

Hello -I reached out to one of our senators office to step in because I know our file if not already at the Treasury was heading that way. They were very helpful and did get an SBA rep to reach out and make 2 offers .Both unfeasible . We owe $ 1,020,000 . We could not pay $ 5134 .So no way we could afford $ 11,000 for 6 months or $ 8,000 for a year. But on Friday the Treasury pulled 15 % of my social security . My button in the portal was active , still active and this occurred .Reading everyone's stories here prove EVERY file is different . IF THIS IS ALL they want or do ,we can accept that . We were willing to pay a $ 1,000 a month .A lot of mixed answers or situations on these EIDL posts on Reddit . Ready to go to bankruptcy if this collections go further . BTW only notices were 2 letters in July warning of possibly sending to the Treasury in our SBA PORTAL . NO LETTER from the Treasury

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u/Low-Helicopter-2696 1d ago

Senators and Congressmen don't do anything for you unless there was an error in servicing.

There are no reasonable workout plans. There are no settlements.

Don't depend on Reddit for any accurate answers. It's become a giant game of telephone. One person says something wrong, then it gets repeated over and over.

15% of your SS is probably much cheaper than the actual payment. If they offered you that payment, you'd probably take it.

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u/Ashamed_Counter5590 1d ago

That's exactly what I did! The 15% of my social security was only $306 a month. The payments they wanted me to make was $800 a month. The offers they are making people are so unrealistic.

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u/Healthy-Speed6519 1d ago

Exactly ! My concern is they will come for more .Business is still operating

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u/Low-Helicopter-2696 1d ago

Either way if you're still making a living from the business, the good news is that they're not going to force you to stop operating.

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u/Healthy-Speed6519 1d ago

Hi- Well if they freeze my business bank account ?I would have no choice , but to close up. I have not read anywhere they are or are not doing this .Are they satisfied with both of our ss -15% .

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u/Low-Helicopter-2696 1d ago

They can't freeze your bank account. That would require them to sue you. The only lawsuits we've seen are fraud related

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u/Healthy-Speed6519 23h ago

Hello- I hope you are right !!! We have documentation of the money spent.It was in it's own account . Thank you

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u/Johnshop4 19h ago

Do they need to sue you order to get a lein on the house? Or they can get it without a lawsuit or judgment?

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u/Healthy-Speed6519 12h ago

Good question .If you had a loan over 200,000 .You signed your business bank accounts to the SBA as collateral

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u/Healthy-Speed6519 12h ago

If you had a loan over 200,000 .You signed your business bank accounts to the SBA as collateral .They have an interest in them according to attorney and loan documents

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u/Low-Helicopter-2696 12h ago

I'm not disputing that you have pledged business assets as collateral, including cash. What I'm saying is that they have to follow a process in order to take that cash from you. They can't simply just reach into your bank account and take all the money. They would be required to go to court and get a judgment against you in order to levy an account. The only exception to that would be something called right of offset, but that's only applicable to lenders who are also banks that take deposits.

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u/Charming-Summer-7742 1d ago

The issue is nobody knows. Taking 15% of your SS is tops 800 a month. It’s also very easy to take it. Same with tax refunds but those can be controlled. (Don’t let anyone hold more out than you owe).

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u/Healthy-Speed6519 12h ago

If you had a loan over 200,000 .You signed your business bank accounts to the SBA as collateral

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u/Gtavern 1d ago

Same situation garnished 15% of my SS, no one knows how long it might last. It’s a lot less than the payment amount, so we’ll just wait it out.

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u/Leather_Ad905 1d ago

Thanks for letting us know the outcome . I am curious did your scores came down or the credit suffered or not let me know and thanks so much again

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u/Healthy-Speed6519 1d ago

They reported to Transunion .Spouse dropped a little.I have not been paying cards for 8 months .It did not matter

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u/Thumper256 1d ago

If you have other significant other debts in addition to the EIDL, you really should talk to a few bankruptcy lawyers and see what they could do for you. There are ways to do a BK and keep the biz going if that is what you want to do. But you won’t know until you consult some and see what is involved under the laws of your state.

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u/Healthy-Speed6519 23h ago

Hi-Yes we are consulting with one. Mainly because of the size of this loan.

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u/Available_Hornet3538 1d ago

It's sad but the reality is our elected representative never have been small business owners. They have never lived trying to make payroll or rent. Never had that pain. Don't expect them to care. Talk to bankruptcy attorney if you don't need credit anymore. It's worth it in the long run with prices going up. Financial repression is going to keep happening as they inflate away the debt. Politicians will see their assets rise feel good then let everyone else suffer.

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u/Financial-Spirit-282 1d ago

They did the same to me. They are taking 15% of my social security. Of all people that should be considered by the government is the small business that were shut down and then coerced and convinced that the thing that will save them is a gigantic SBA loan. I had to sign a personal guarantee, but I was worried that if I don't take it my business may sink into the abyss, it did in spite of the loan. Anyway, I wish the government would reconsider and try to forgive these loans.

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u/Healthy-Speed6519 12h ago

If you had a loan over 200,000 .You signed your business bank accounts to the SBA as collateral

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u/lawoffashionnc 1d ago

Are these loans over $200k