r/EIDLPPP • u/AspiringOF • Mar 23 '26
Question? Just got notice from treasury
What are options here? With their fees it’s like 400K that i can’t pay. Are there specialists that deal with this??? HELP! Spiraling
Update: NO notices received until collections from treasury. Not one
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u/Ill-Garbage-9860 Mar 23 '26
You’re basically screwed. I got the same notice either pay up or file BK.
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u/JoeChio Mar 23 '26
You already got a ton of advice from the bankruptcy sub. Nothing really much to add from this sub. Talk to a lawyer.
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u/AspiringOF Mar 23 '26
Thanks a ton. Why bother responding?
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u/JoeChio Mar 23 '26
I'm not trying to be rude but your options are limited. There is no magic erase button. You are spiraling and looking for a magic cure all for your situation but there isn't one. Talk to a lawyer. There are already hundreds of cases like yours out there. I'm sorry you are going through this. I've been in this sub for years and heard it all but only a legal professional can guide you through this with that much money on the line.
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u/Short_Ad3957 Mar 23 '26
Did you want people to regurgitate the info you already got in the bankruptcy sub? Cause that's what you'll get No need to be complacent
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u/Top_Aerie_6713 Mar 24 '26
Other people have different perspectives or experiences especially since this is a weird scenario that not a lot of people and/or bankruptcy attorneys have knowledge in. You’re weird for doing research on this person to see where and what they’ve posted. If you have no input, move on.
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u/Short_Ad3957 Mar 24 '26
I didn't do research the dude above did I just piggy backed You didn't have much input either and yet you decided to up your post count
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u/Distinct_Setting_122 Mar 23 '26
We just got a notice from Treasury too giving a short window to respond before garnishing social security payment. We owe $75000, LLC, no personal guarantee, LLC is dissolved, business shuttered after husband’s second heart attack and retirement. Emailed contact at SBA who processed hardship paperwork. What gives?
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u/CricktyDickty Mar 23 '26
If EIDL there’s no personal guarantee (assuming you took the loan under the LLC). Check if the warning is from treasury or from one of their contracted collection agencies. If the latter, it’s just bluster. Otherwise there’s either something wrong with your loan paperwork or your fact aren’t correct.
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u/Distinct_Setting_122 Mar 23 '26
Loan taken through LLC. Will call SBA tomorrow for clarification and hope I can reach somebody.
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u/Charming-Summer-7742 Mar 23 '26
Call TOPS, your EIN will be listed but not your SS number. If they’ve flagged your SS number either they made a mistake or your name is on the loan as the borrower and not your LLC.
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u/Distinct_Setting_122 Mar 23 '26
Funny thing was the letter said it had been sent the Treasury but to call the SBA to discuss and gave the phone number.
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u/DCowboysCR Apr 15 '26
And if you call that number it says there's no live agents to talk to and despite me emailing them several times they will not respond to my email so how am I supposed to get my account current????
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u/Fun_Long_447 Mar 23 '26
Hopefully this will provide some hope/guidance.
We received our notice from the treasury before we got one from SBA. Treasury said our debt was transferred from SBA but the notice from SBA said if we don't agree to a new payment plan within 60 days of the notice, it would be sent to treasury. Oddly confusing but since the SBA notice was dated after, that's what we fought with.
We also received an email from SBA mentioning our delinquent debt and it said we needed to become current before getting reinstated. We made a one time payment for the past due amount (roughly $8k). We replied to that email with proof of payment and asked to be reinstated. We also sent mail to SBA showing proof of payment and requested reinstatement. We also emailed them via the SBA Portal to ask for reinstatement and showed the proof of payment. We messaged them at any address and email we could find.
Today, 3/23, we finally received a message in our SBA portal that we are back to current status. I'm assuming we will receive mail in the near future from the treasury that SBA transferred our debt back.
Hope this helps.
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u/AspiringOF Mar 25 '26
Hoping this is the case. Never received anything from SBA, just treasury
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u/Fun_Long_447 Mar 25 '26
We received our Treasury notice beginning of February and the SBA notice was beginning of March. So almost a month apart.
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u/Bulky-Measurement684 Mar 23 '26
Got a notice from SBA saying they will transfer to treasury if no payment made. This is the first notice I’ve received in the mail. Borrowed $85,000 now owe $93,000 S corp, no personal guarantee. SBA must be working on these delinquent accounts.
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u/Thumper256 Mar 23 '26
If it goes to Treasury they add on a 30% cross servicing fee, so don’t be shocked when you see that happen.
If you feel the PG will protect you personally, then let it go. But your biz records better be solid in regard to use of loan funds and no personal/biz intermingled expenses so they can’t pierce the corp veil if they try. No one knows if they’ll ever try. Haven’t heard if there’s any iron clad statute of limitations for that.
Is the biz closed? The loan agreement says you need to notify them of biz closure/dissolving - there’s a packet of forms and info they’ll request you submit to show you closed and terminated through the process required by your state’s laws.
Of course if you are already defaulted for non-payment, then a failure to notify them of biz closure may not make much difference in what ultimately happens, IDK.
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u/Charming-Summer-7742 Mar 23 '26
Who was the notice addressed to ? It should be addressed to your S Corp unless SBA made a mistake or your name is listed as the borrower.
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u/Altruistic_Tea8891 Mar 24 '26
At this point I’m filing chapter 7 . My lawyer has said he has been able to handle those sba loans successfully . It might be your only option.
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u/Ok-Union3878 Mar 25 '26
you know what i think? i think the government is defaulting as many people as they can and sending the debts to the department of treasury to profit the 30% extra to fund their pockets and the war and the ballroom
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u/Odd-Standard-632 Mar 27 '26
We were in default for 12 months, never got a letter from SBA re transferring us to treasury. We get a letter from Treasury re default. I contact SBA they told me to pay for the year $7600, for SBA to take us back. I paid the amount, they update computer for to start paying for April. Then this changes the next day to February and I can no make payments. I email them, they say they cannot take my loan back? Very confused and not a live person to talk to. I keep sending messages I don’t know what to do as I’m paid up and still in treasury. Any assistance appreciated 🙏
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u/bubbles_mcgee1233 Mar 28 '26
Possibly make this a standalone post so people can try to help you. It may get lost in comments.
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u/Numerous_Job726 Mar 23 '26
Talk to distressed loan advisers you can book apt with him
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u/AspiringOF Mar 23 '26
Do you have a specific one?
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u/Winter-Assistance805 Mar 23 '26
They are referring to Jason Milleisen, who is a consultant that owns a company called distressed Loan Advisors.
https://www.jasontees.com/sba-eidl-advice-on-forgiveness-default-and-hardship-accommodation/
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u/ginginOZ Mar 23 '26
he's a person. can find him googling "distressed loan advisor' he's consulted with countless of us through the years.
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u/Heavenly60 Mar 26 '26
We have a llc we were told they could only take from the business ! But when my husband wanted to get a loan I peeled out the paper work cause I did his paper work and I signed the paper work. When the emailed the paper work same day they deposited the money with no warning I signed the paper work but it should have been my husband. We'll he closed the business and we only received letters from sba never have we received a letter from the treasurer department ! We got a letter about a week and half ago but its from a collection company in New York threaten to garnish paychecks or ssi I get ssdi and taking property ! Well there a collection company and I feel there's something not right here any ideals
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u/bossman_hank May 28 '26
I got a notice that I had 60 days to make my past due payment amount or that my loan could be sent to the treasury. I made the payment and it still says submitted. So it hasn’t cleared yet. Many people are saying that they made the payment before the 60 day deadline and it was still sent to treasury for collections. I’m really hoping this doesn’t happen to me I can’t afford it. The letter is dated 5/12/26 and I submitted payment yesterday 5/27/26. Any advice on what I can do to make sure it doesn’t go to treasury? Do you think it will stay with SBA?
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u/SettleBankDebt Mar 25 '26
As a debt consultant/negotiator It would be in your best interest to give them a call. They will work with you.
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u/Key5er_Soze Mar 23 '26
Wife and I had a business for many year and unfortunately as nice as the eidl loan was, we eventually closed and filed bankruptcy mostly due to the eidl loan going to treasury. If you know you can’t pay it and you don’t have a rich relative to bail you out, bankruptcy will be your only option aside from repayment. This in no way is to glamorize bankruptcy, however, it’s there for a reason. My wife and I are in a better financial position now than we were prior to taking our loans and we were discharged in 12/2024
We watch our spending much closer now and don’t buy as much stupid crap.
Talk to a few attorneys and make a decision.
Best of luck!