Have a look here: https://www.nytimes.com/2026/03/24/business/economy/sba-pandemic-loan-defaults.html

It represented the issue well, but I was disappointed that many commenters didn't grasp the issue from a business owner perspective. They seemed unwilling to sympathize.

can someone help me with this question: I took out eidl loan 1st loan was $80,,000 then modified it for another $80,000 so $160,000 altogether, no personal guarantee, took out the loan as an llc but i filed taxes as an s corp i am 6 months behind on payments and my company is closed down since 2023 my file is in liquidation legal department with sba and I am in uncollectable status even though I am still making partial payments every month what should i expect or do, what will happen to me, will this go to collections and garnishments do you think?

Someone I know had an under 100k loan, no PG. Never made a payment, just ignored it. Couple months ago, gets a notice from a collection agency that it's been turned over to them. Never heard a word from SBA or Treasury. Sends them a letter stating he doesn't know anything about it. Doesn't hear anything. Meanwhile , I'm the process of selling their business. Checks UCC filings. There's a lapsed filing by the SBA. So they send a certified letter stating they want the lien terminated. The address the SBA gave in the UCC filing was incorrect. After 20 days, letter gets returned. They file a UCC3 with the state to have the lien terminated by debtor. State terminates it, they sell the business with no valid liens. Have yet to hear anything from anybody.....

I saw this notice on the Treasury site: https://fiscal.treasury.gov/debt-management/contact

Doesn't bode well for those of us looking to do exactly that...