EVENT DESCRIPTION
During the COVID-19 pandemic, the SBA issued roughly $400 billion in Economic Injury Disaster Loans (EIDL) to millions of small businesses — real loans, not grants, now generating a rapidly growing wave of delinquencies and defaults. This program walks accountants and attorneys through the full life cycle of a distressed EIDL loan: how the program differs from a standard SBA 7(a) or SBA 504 loan, the procedural steps SBA and the U.S. Treasury must follow before and after a loan is referred for collection under the Debt Collection Improvement Act (DCIA), the aggressive collection tools available once a loan enters Treasury cross-servicing, and the federal statutory and constitutional protections — including the FDCPA and Fifth Amendment due process — that borrowers and their advisors can use to challenge improper collection. The session closes with practical intake questions and realistic guidance advisors can give clients facing SBA/Treasury collection.
EVENT OBJECTIVE
Upon completion of this program, participants will be able to:
1. Explain the origins and scale of the EIDL program and distinguish EIDL (7(b)) disaster loans from standard SBA 7(a) or 504 loan programs, including which workout options are unavailable to EIDL borrowers.
2. Identify the procedural steps SBA and Treasury must satisfy under the DCIA and SOP 50 52 2 before classifying a loan as delinquent and referring it to Treasury Cross-Servicing, including the 60-day pre-referral notice requirement.
3. Describe the collection tools available once an EIDL loan enters Treasury cross-servicing — administrative wage garnishment, tax refund offset, bank levies, and private collection referral — and the fees associated with each.
4. Apply the FDCPA's validation-notice and dispute provisions (15 U.S.C. §§ 1692g, 1692k) to evaluate whether a private collector's conduct in an EIDL case is compliant or actionable.
5. Analyze key precedent — including Canada v. United States SBA and Jones v. Flowers — and the Fifth Amendment due process framework underlying late-notice and improper-referral challenges.
6. Apply a five-question intake framework to assess the strength of a client's EIDL collection defense and set realistic expectations regarding likely outcomes.
