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The repayment process of an SBA loan under the condition of the business closing down can be taxing. A business on the verge of closing will encounter many difficult situations; we can say the same for the business owner as well. If your business is going to close down and you are finding it difficult to repay or going bankrupt, Alnicor Consultingu2019s Business solutions can provide you with a much-needed consultation. <br><br>
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What Happens To SBA Loan If Business Closes Down? There are many businesses that applied for an SBA loan with the EIDL (Economic Injury Disaster Loan) during the period of COVID-19. You are certainly not alone if your business is also among them. According to a report, as of January 2023, the payments that were coming in place of those loans have stopped. Now, 1.6 million out of the 4 million small businesses that were able to receive these loans have to make repayment of their loans. It is because of the end of the deferment** on the 1st of January, 2023.
SBA EIDL loan in three simple steps Now, the situation raises one question, “What happens to the SBA Loan if the business closes down?” Will it be deferred, or will the repayment come from the personal assets of the business owner? Let’s find out! Is your business among many businesses that have closed down due to the Coronavirus pandemic? Do not worry, as we will be breaking down how it is possible to handle the SBA EIDL loan in three simple steps.
SBA EIDL loan in three simple steps Understanding The Purpose Of SBA EIDL Identification Of The Loan Amount Figure Out The Best Way Of Handling The SBA Loan If the Business Is Closing
Understanding The Purpose Of SBA EIDL In order to get out of the situation, it is important to first get an understanding of what the loan from EIDL was for. The purpose of an SBA loan from EIDL was to cover the operating expenditure and meet the financial obligations of the business. The allowance of the loan was to cover the finances from COVID-19 if it had not occurred. However, it is evident that these losses occurred. Thus, it became the need of the hour for the economy to provide critical support to small businesses.
Identification Of The Loan Amount Now that you have an understanding of what the SBA EIDL was for, the next is to look for an answer to what would happen to a business if it closed down. Well, there is no single answer as to what happens will take into account the loan amount and its expenditure status. For an amount less than $25,000 For an amount greater than $25,000 and less than $200,000 For an amount greater than $200,000
Figure Out The Best Way Of Handling The SBA Loan If the Business Is Closing Once you know what is on the line if your business is closing down, the next would be to figure out the best course of action to minimize the losses. You could have gone for Subchapter 5 of Chapter 11, Bankruptcy** if your business was not closing. However, since that option is no longer viable for the closing ones, they must look for other ways to handle the loan.
Ways To Handling The SBA Loan If the Business Is Closing Bankruptcy Business Bankruptcy Personal Bankruptcy
Contact Us Company Name – Alnicor Consulting Website – www.alnicorconsulting.com Address – 16-04 Crossbay Blvd # 288 Howard Beach NY 11414 Official Email – info@alnicorconsulting.com Contact Number – 833-211-1777
