Convert IEEPA Tariff Claims to Cash on an Expedited Basis

IEEPA Tariff Claims can either be Sold Now at a Discount or Used as Collateral for a Term Loan

Asset Enhancement Solutions, LLC (“AES”), is actively assisting companies nationwide convert their IEEPA tariff claims to cash on an expedited basis. While the Supreme Court invalidated the Administration’s ability to impose tariffs under IEEPA (International Emergency Economic Powers Act), it was deliberately silent with respect to refunds. As the Administration’s stance is likely to be adversarial, it could take months if not years for businesses to receive IEEPA tariff refunds via conventional channels.

For the past few months, AES has been working with Hedge Funds that have purchased IEEPA claims at a discount from businesses that required liquidity and were not willing to wait for the outcome of the Supreme Court Decision. During this period AES facilitated the sale of $20 million of IEEPA tariff claims.

Prior to the Supreme Court Ruling, Hedge Funds were purchasing IEEPA tariff claims at an average of only 22% of the total claim due to the high risks involved. After the Ruling, due to mitigation of some of the uncertainty, they are currently purchasing claims at 40% to 50% of the total claim. There is also the option of borrowing funds on a “recourse” basis, using the IEEPA Tariff Refund Claim as collateral for a loan.

Instead of waiting 6, 12, 24 months or even longer to receive an IEEPA tariff refund, the Hedge Funds AES works with can either purchase or lend against claims within approximately 4 to 6 weeks depending on the quality of documentation assembled by the business.

For a detailed discussion of how these two options work see below.

How the Process of Selling an IEEPA Tariff Claim Works

Concept is:

• As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025.
• Company X wants to de-risk prior to determination and finalization of the IEEPA tariff Refund Process.
• Company X sells (50%, 100%, or some other percentage) of its tariff ‘claim’ to Buyer A in the form of a participation.
• The Trade is nonrecourse to Company X as to the outcome of the Refund Process; but recourse to Company X only if the amount / validity of the claim is proven to be false, or too high.

Process for Selling IEEPA Tariff Claims:

• As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025.
• Company X agrees to “sell” its tariff claim to Buyer for 45% of the claim amount, i.e. $4.5 million.
• Buyer sends Seller a Confirm, and then ultimately a Participation Agreement which will govern the transaction.
• IMPORTANT – Company X retains its status as the “Plaintiff” / “Claimant” since these tariff claims are not transferable.
• Buyer might ask Company X to commence litigation for the return of the IEEPA tariffs paid. The rationale for this is that it is possible that only those parties who have commenced actual litigation are entitled to refunds. Thus, Company X will need to commence litigation in order to receive their refund.
• Buyer will continue to monitor the situation and inform Company X of developments.
• If and when the refund is received on the claim, Company X will receive the refund and forward to the Buyer.

Using an IEEPA Tariff Claim as Collateral for a Loan

• In lieu of selling an IEEPA Tariff Claim at a discount, it is possible to use this claim as collateral for a term loan. This term loan would be on a “recourse: basis to the borrower.
• The potential loan amount could be up to approximately 50% to 80% of the total IEEPA claim amount.
• The interest rate would be in the low to mid-teens.

Key Points Regarding the Sale:

• Company X (as seller of the Claim) must be a financially healthy enough counterparty for Buyer A to enter into what could be a 2-to-3-year process of obtaining the refund.
• Legal fees are split going forward based on risk percentage. If Company X sells 100% today, Buyer A will pay 100% of legal costs today.
• Buyers are currently paying 40% to 50% to companies seeking to sell their IEEPA tariff claims. However, this is an evolving market and these percentages can either increase or decrease depending on the markets’ reaction to the Trump Administration’s expected obstructionism and the unresolved Court of International Trade’s procedural issues.
• Prior to the Supreme Court decision, buyers were purchasing tariff claims at an average of 22% due to the high risks involved.
• We will be monitoring on a daily basis the rates at which Buyers are purchasing IEEPA claims and we will update our website accordingly. Feel free to email us to ascertain what the rate is on any particular day.
• There would likely be an administrative process instituted such that companies that have paid these IEEPA tariffs will need to file special claims and wait to get refunded by the government. The process of receiving the refund payment from the government could take up to 12-to-18-to-24 months or even longer.
• Asset Enhancement Solutions, LLC also assisted many businesses expedite funding of their ERC (Employee Retention Tax Credit) within 6 to 8 weeks instead of waiting 12 to 36 months to receive funds from the IRS. AES facilitated the sale of $50 million of ERC claims over the past few years with individual claims ranging from $1 million to $7 million.

About Asset Enhancement Solutions, LLC

Asset Enhancement Solutions, LLC ("AES"), is a financial advisory firm that provides both Capital Raising and Consulting Services to companies considering important transactions such as debt or equity financing, selling a company or acquiring a company. We specialize in arranging debt and equity financing for companies with challenges. These include unfavorable challenges such as operational, legal, tax, financial or liquidity issues or positive challenges such as opportunities for growth, acquisition, and long-term success. AES works with middle market companies, small businesses, and public companies.

We never shy away from adversity and difficult challenges; we embrace and thrive on it. We have the experience and expertise needed to find options and creative financial solutions for any size business. The firm was founded on the principle of experienced operating executives providing valued-added services to clients at a reasonable fee structure.

AES added the processing of PPP Loans to its services in April 2020. As an Agent for multiple PPP lenders, AES processed over 1,500 Paycheck Protection Program (PPP) loans totaling $150,000,000.

Seeing that some businesses were waiting 12 months or longer to receive their ERC Refunds from the IRS, in March of 2022 AES teamed up with a few lenders and hedge funds that would either advance funds against ERC Refund Claims or purchase ERC Claims at a discount. This financing solution proved to be a lifeline for many companies. AES monetized ERC Claims totaling $50 million.

Please reach out to us to discuss how we can help you overcome your challenges and grow your business.

We are here to help. Do not hesitate to contact us at any time:

Phone: 516-767-0100
After Business Hours please leave a voice message and your message will be forwarded to us 24/7.
Email: info@assetenhancement.com

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