How Can a Lawyer Help with My Business’s SBA EIDL Loan?

When the COVID-19 pandemic began in the United States, small businesses in Florida and across the country suffered immensely. Recognizing the risk of closure and significant losses that many businesses were facing, the US Small Business Administration (SBA) made certain stimulus payments and loans available to a wide range of small businesses in varying amounts. Some of the money was essentially a grant, meaning that it did not have to be paid back — businesses that received money from the Paycheck Protection Program (PPP), for example, could request forgiveness. At the same time, a substantial amount of the funding provided to small businesses came in the form of loans — Economic Injury Disaster Loan (EIDL) — which included an agreement from the recipient businesses to repay them in the future.

Currently, businesses in South Florida are struggling financially and have concerns about repaying their SBA loans, including EIDL loans received during the pandemic. It is important to know that you may have options to make repayment easier and much more possible for your business. How can a lawyer help? Our West Palm Beach business law attorneys can tell you more.

Hardship Accommodation Plan 

The SBA announced a Hardship Accommodation Plan back in 2022 as a potential option for EIDL borrowers who are struggling to make payments. The Hardship Accommodation can lower payments for a period of time and allow borrowers to pay only a small percentage of the previously agreed-upon monthly payment for a specific period of time. Many EIDL loan or loan fund borrowers applied for and received a Hardship Accommodation, but for many, the Hardship Accommodation has run out. Other EIDL loan borrowers never applied for the Hardship Accommodation because they did not realize it was an option.

The good news is that you can still seek a Hardship Accommodation with help from an attorney, and you also may be able to apply for an extension of a previous Hardship Accommodation with assistance from a business lawyer in South Florida.

Extension for Hardship Accommodation 

In November 2023, the SBA announced that the Hardship Accommodation could be extended for businesses currently in repayment of EIDL loans. Here is what an extension, or a new Hardship Accommodation (if you did not receive one previously) could mean for you:

• Pay 10 percent of the payment amount for both the first 6-month and second 6-month Hardship Accommodation period;
• Pay 50 percent of the payment amount for the third 6-month Hardship Accommodation period; and
• Pay 75 percent of the payment amount for the fourth 6-month Hardship Accommodation period.

Contact Our West Palm Beach Business Lawyers Today 

Do you have an EIDL loan that is past due? Has your Hardship Accommodation run out, or is it about to run out? Your business could be eligible for a Hardship Accommodation or an extension of a Hardship Accommodation you have already received. Time is short, so it is essential to seek advice from an experienced West Palm Beach business lawyer at Kelley Kaplan & Eller, PLLC as quickly as you can to take advantage of any opportunities that may be available to you to repay your EIDL loan at a more affordable pace and rate. Contact us today to learn more about your options and how our attorneys can help.

Source:

sba.gov/article/2024/01/05/small-business-administration-announces-further-action-help-ppp-covid-eidl-borrowers