AmiSight 7/31: My Phone Keeps Ringing with EIDL Problems

As my phone keeps ringing with EIDL problems, I thought it might be helpful to share a few insights in today's AmiSight. The Biden administration gave out EIDL loans like cotton candy. If you took one, there are things you'll need to consider.

Defaults in the EIDL portfolio are running very high. And in Washington, DC they love to punch each other in the face. So in this environment, Republicans are in the mood to blame the Democrats for the defaults and try to get the taxpayers' money back.

There are two different scenarios for EIDL borrowers to think about, especially if you took a loan greater than $500K.

DOCUMENT what you did with the money. Borrowers are being audited, and I receive regular calls requesting that I serve as an expert witness in EIDL trials. The defense lawyers don't like me, and these conversations don't get anywhere, BUT PEOPLE ARE GOING TO JAIL.

Many borrowers have documented their financial situation well, used the money for legitimate purposes, and are now struggling to repay it. In these cases, you have two choices. You can try to go through a long, arduous process to ask for relief, which may or may not get anywhere, or you can figure out how to pay it back. The latter situation is ideal as a debt to the US government is ultimately never a great idea, if it can be avoided.

I am not trying to be unsympathetic. The situation is challenging for many borrowers who used the money for all the right reasons. And I will do anything I can to help these folks, but my best advice is probably going to be to get your grit on and figure out how to pay it back.

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