New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"

 The SBA has announced a "Hardship Accommodation Plan" for EIDL loan borrowers.New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"If approved, the Hardship Accommodation Plan will reduce the borrower’s payment to 10% of their monthly payment for six months, after which their regular monthly payment will resume unless they apply for, and receive, another six-month extension.Loans under $200,000 can enroll in a hardship accommodation plan through their MySBA Loan Portal. For larger loans, they will need to call the Covid EIDL Servicing Center.For businesses with Covid EIDL loans that are under $200,000, the SBA requires, along with an offer in compromise application, the most recent profit and loss statements, most recent balance sheet and the most recent three months of history for all business checking accounts, along with its most recent federal tax returns and any copies of a purchase agreement or dissolution documentation if sold or shut down.This information will be used to  evaluate a borrower’s ability to repay the outstanding EIDL loan.If outstanding EIDL SBA loans are not repaid the SBA can pursue the business's collateral, commence litigation, wage garnishment or intercept tax refunds.
Jim Shenwick, Esq. 917 363 3391   [email protected]We help individuals & companies with too much debt!