Closing a business that owes money to the SBA, or worse, is in default on an EIDL or 7(a) loan, involves navigating numerous forms, complex processes, and substantial government red tape. Properly managing the entire closure process, from initial steps to final dissolution, is crucial to prevent further complications or breaches, as neglecting even the smallest details can quickly expose you, the business owner, to personal liability claims and the risk of aggressive government collection efforts.

Federal law mandates that the SBA transfer unpaid loans to the U.S. Treasury Department for collection, triggering what we refer to as the 'Treasury Trifecta': wage garnishment, asset foreclosure, and seizure of tax benefits (tax refunds, social security, etc.). While the SBA cannot forgive the loan and the Treasury must pursue collection, EIDLexit's comprehensive services help you navigate this challenging process and proactively mitigate the associated risks.

With the Office of Inspector General (OIG) reporting that "the U.S. Treasury is aiming to recoup nearly $60 billion in fraudulent loans," EIDLexit stands as a vital ally for legitimate businesses that have faced genuine financial hardship, whether in the past or present. Our meticulous and compliant process guides clients through the entire closure journey, from initial steps to the creation of a comprehensive package for the SBA. This diligent approach sets our clients apart from cases of fraud or improper closure, significantly reducing the likelihood of the US Treasury pursuing personal collection actions against the business owner.

While these challenges may seem daunting, remember that you established a corporate entity for a purpose—to protect yourself from personal liability. Our business closure process fortifies your company's corporate veil, which significantly reduces the risk of personal liability for your business's debts.