re: EIDL Loan Repayment / Forgiveness

quote:

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Have not heard, but curious myself that if a business shuts down and has not assets and there is no personal guaranty behind it, what happens.

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Generally, they turn over to treasury and they attempt to come after any payments they make to you.

There is some process involved in that. It sometimes takes years.

They of course also flag you from future federal funding sources (FHA, SBA).

If they choose to not turn over to Treasury (not collect), it is essentially a charge off.

Think of how many people have huge loans that are older in age and no chance they make it 30 years. Or the average life of a small business.