The Small Business Administration (SBA) has traditionally issued loans that have helped fund small businesses for many years before the world had heard of COVID-19. These loans would be used to start a new business or to expand an existing business.
When the COVID-19 pandemic hit in 2020, many business owners had to look to the Small Business Administration for help keeping their business afloat. In 2020, the SBA quickly created two new programs to help small businesses remain operating.
Several years later, I am hearing from more and more small business owners that were not able to survive the pandemic, yet their loans remain and they need to know what they can do. Many of these business owners looked to the SBA for loans to help with the costs of maintaining their businesses – employees, supplies, rent, etc. until their profit and loss margins improved.
Can I Get Rid of SBA, PPP and EIDL Loans in Bankruptcy?
Three Separate Loan Programs
EIDL Loans Have Come Due
My Business Has Closed/is Closing, and I Cannot Afford to Repay the Loan – Can Bankruptcy Help?
I Used the EIDL/PPP Funds Properly – May I File Bankruptcy on Them?
Secured vs. Unsecured SBA Loans
I Need More Information About My Options – What Now?
If you are, or were, a small business owner that took out one of these loans and are now unable to repay them – the first step is a consultation with a professional. I offer an initial no-cost consultation where we will discuss these issues and what options are available with regard to a potential bankruptcy filing. Assuming the loan proceeds were used as intended, a business bankruptcy may help or a personal bankruptcy may be necessary – it will depend on your personal circumstances.
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Every legal issue is very unique. Accordingly, the information in this blog is intended as general education material and not as legal advice. If you think you may have a legal issue, you should consult an attorney.