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IMPORTANT DEADLINE FOR PPP AND COVID-19 EIDL BORROWERS IN DEFAULT
If you received a Paycheck Protection Program (PPP) or COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) loan from the U.S. Small Business Administration (SBA) for under $100,000 and are in default, the SBA recommends you take action before March 3, 2024.
The U.S. Small Business Administration will begin referring defaulted PPP and COVID-19 EIDL borrowers with loans under $100,000 to the U.S. Treasury Department and the Internal Revenue Service for collection beginning March 4, 2024.
What does this mean?
Small business borrowers who are referred to Treasury and IRS for collection may face significant consequences, including:
- Negative impact on credit scores;
- Withholding of future state and federal tax refunds and any potential federal government funding (such as social security); and
- Referral of your loan to private debt collectors to pursue repayment, who may use tactics like wage garnishment.
What can borrowers do?
If you have a PPP loan under $100,000, follow the instructions at www.sba.gov/PPPForgiveness to complete your PPP forgiveness application by March 3, 2024. If your lender is not participating in the SBA direct forgiveness portal, you will need to contact them directly. You can find a list of participating lenders in the SBA direct forgiveness portal here.
If you have a COVID-19 EIDL loan under $100,000, visit Manage your EIDL at SBA.gov.
SBA Resources to Assist With PPP or COVID-19 EIDL
Please note, as a resource partner of the SBA, the Economic Development Collaborative Small Business Development Center does not have visibility into your PPP or EIDL loan status. Please contact SBA with any questions.
PPP: If you need additional assistance with your PPP direct forgiveness application, contact SBA at 877-552-2692 (Monday-Friday 8:00 am-8:00 pm EST).
COVID-19 EIDL: If you need assistance with your COVID-19 EIDL loan, contact SBA at 833-853-5638 (Monday -Saturday 8:00 am-8:00 pm EST), or email covideidlservicing@sba.gov with your loan or application number and the reason for your request in the subject line.
Webinars
SBA Deadlines for PPP and COVID-19 EIDL Borrowers
The Los Angeles Regional Network of Small Business Development Centers will be hosting an informative webinar on this important deadline.
- Feb 27, 2024 5:00 PM
- Feb 28, 2024 12:00 PM
- Feb 29, 2024 5:00 PM
- Mar 1, 2024 9:00 AM
CLICK HERE to register!
Note: This notice has been provided by the U.S. Small Business Administration and is not intended to collect outstanding debts from individuals or entities currently undergoing bankruptcy proceedings. |
