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.

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.....

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?

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...

Anyone have similar situation or insight?

500k EIDL. 700k 7a loans with lien priority over EIDL.

3 location business that is doing poorly. Shrinking business back to profitable elements. Closing 1 location, greatly reducing 2nd location where majority of assets exist. Bank with 7a is liquidating assets as they have lien priority. They are on board with our trying to continue reduced operations.

I expect to claim personal bankruptcy by EOY. Clear out the personal guarantee on the EIDL along with a few other high value debt obligations, mostly all business related.

Wondering what treasury’s and SBA recourse to try to close business is at that point? My current belief is as long as the bank is on board with my staying open, and not foreclosing on what would be almost worthless assets, then the business is somewhat protected.

I’m shocked to find out that days after they receive an official dispute to treasury and collection agency, the send all the notices that weren’t there before into your portal. It happened to me. It showed middle of the night like 1 am they downloaded several late notices into the portal that were all dated from 2025 ! They were fabricated and out in after you dispute due process.
Tell me HOW is that ok ???
This is illegal

HOW. IS. THIS. OK??!

Hi everyone,

I am looking for some perspective and guidance regarding a COVID EIDL loan for my business here in Texas.

The Details:

• Loan Amount: Over $200k modified EIDL with a Personal Guarantee (PG).
• Current Status: Business is open and actively operating, but cash flow is under heavy pressure from recent market conditions.
• My Goal: I genuinely want to fulfill my obligation and pay this debt back—this is taxpayer money and I take that duty very seriously. I am trying to get temporary payment relief/deferment (Hardship Payment Assistance) to buy breathing room so I can stabilize the business and systematically sell personal assets over time to clear the debt.

What I’m Asking the Community:

1. SBA Hardship Experience: For those with EIDL loans over $200k, what has your experience been requesting custom payment assistance through the MySBA portal? How long did the manual review take?
2. Attorney Recommendations (Texas): Can anyone recommend a solid Texas-based attorney or law firm experienced in SBA EIDL workouts, corporate debt restructuring, or Chapter 11/13/7 bankruptcy consultations?

I've seen a lot of people on here feeling like they've hit a dead end with their COVID EIDL loans. I wanted to share one thing that has made a difference in my case.

Several months ago, I reached out to my U.S. Senator's office for help. It hasn't been a quick fix, and I don't have a final resolution yet. But I have seen incremental progress that I wasn't getting through normal SBA channels.

After multiple follow-ups, my case was assigned to a Congressional Liaison. Most recently, I was informed that my file has been forwarded to the appropriate department for assignment and further review, and that a Loan Specialist will be contacting me. That's more movement than I'd seen in quite some time.

I'm not posting this to suggest that contacting your Senator or Representative guarantees a positive outcome. It doesn't. But congressional offices exist to help constituents navigate federal agencies, and if your case has stalled or you're getting nowhere, it's another avenue that's worth considering.

The timing also feels important. Congress recently released a report highlighting significant issues with the COVID EIDL program and the challenges borrowers continue to face. If there was ever a time for members of Congress to hear directly from the small business owners living through these problems, this may be it.

My advice is simple:

• Be respectful.
• Be organized.
• Clearly explain your situation.
• Include your loan number, timeline, and what you're asking the SBA to review.
• Stay persistent and follow up.

Even if your congressional office can't solve the problem directly, they may be able to get your case reviewed by someone who otherwise wouldn't have seen it.

If more borrowers respectfully share their experiences with their elected representatives, it gives Congress a better understanding of what's happening on the ground. At a minimum, that's how systemic issues become more visible.

I hope this helps someone who's feeling stuck.

Bankruptcy seems to be the only way out. Finding SBA experience attorney is not easy . Anybody know how much of a credit hit on personal side. Currently 843. 525k loan. I’m not in collection but it’s headed that way.

As the title says I was wondering if anyone here has had experience dealing with or using Chapter 11V to maintain business operations while paying past due debts?

I’ve read it’s a good alternative to Chapter 7 if you can present a plan that shows the business is still viable but just behind due to financial calamity which mine is.

I borrowed $25,000 from the SBA EIDL program back in 2021. They offered an additional $10,000 after funding the first $25,000. I was a sole proprieties. I see peoples post here about the SBA not being able to collect or the treasury if you don't have a personal guarantee. Is this true?

I have been making minimum payments for years now but fell behind a couple months now they want a bigger payment to become current but I cant afford it. I asked about an OIC and this is the response I got from SBA.

Dear Borrower,

This message is to inform you that the SBA may consider an Offer in Compromise application under the following circumstances: 

• Business has permanently closed.  
• Business collateral has been liquidated.  The borrower must have worked with the SBA Liquidation-Distressed Asset team for the proper and allowed liquidation process.   

Please be advised that SBA does not offer a loan forgiveness program.  Additionally, exercise caution when sharing personal information, and be attentive to any individuals requesting such information under false pretenses. 

If you have additional questions or require further assistance, please email us at: [[email protected]](mailto:[email protected]).
 

Sincerely,

Covid EIDL Servicing Center

Office of Capital Access

U.S. Small Business Administration

Why is it that REAL businesses that are struggling with making payments on these loans aren't receiving any help with maintaining payments. If its all about money when its sent to treasury and we are forced to file bankruptcy what does the SBA receive? Absolutely NOTHING!!! Why won't they work with legitimate businesses that are trying to become current and pay their obligations? Who benefits from having businesses file bankruptcy? This is ridiculous and its just ruining lives. It's like we are being punished for something we had no control over. We don't control the economy. Please I hope the right person or persons is reading this.......

Email looks exactly like anyone received from the SBA. It includes my personal email, my business partners personal email, and our official company email. Phone number attached checks out. Email states we are due a partial refund and to submit the pdf form to the loan specialist who sent the email. Email address attached as a hyperlink is the correct email to the SBA.

Is this legit? Has anyone else received something like this months after submitting final payment and closing the account?

My accounts became past due for approximately 10–12 months. In March 2026, I made multiple
attempts to contact the SBA to bring my loans current. At that time, the loans were marked as “SBA Uncollectable” but had not yet been transferred to the Treasury. However, I was unable to make any payments through the online portal.

Due to the lack of available customer service for EIDL loans, I reached out via email and was assisted by an agent, who helped calculate the past-due amounts as of March 10, 2026. I explained that I could not make payments online, and she advised me to submit payment as soon as possible while the loans were still with the SBA.

Following that guidance, I mailed two checks in April, each in the amount of $20,000, intended to bring both loans current. Those checks were returned to me unprocessed. Believing there may have been an issue with the mailing address, I resent both checks on May 10, 2026, after confirming the correct address listed on the SBA website. I also notified the CESC SBA email that the checks had been mailed.

Since May 10, I have neither received the checks back nor seen them deposited. Recently, I logged into the SBA portal and discovered that both loans have now been transferred to the U.S. Treasury.

This situation is extremely concerning. I made repeated good-faith efforts to bring my loans current, but due to the lack of payment access and communication channels, I was unable to do so. As a result, I am now facing a potential 30% penalty on loans that I was already struggling to manage.

Anyone have any luck with similar experiences? I tried to become current

loan 1: $2396

loan 2: $4816

Both loans are sole proprietorships so they’re all on me

I received a 60 day notice in the mail for loan 1 and managed to pay the overdue balance ($430) on 60th day, but I haven’t been able to confirm if that was actually processed in a manner that would prevent it being sent to treasury.

Loan 2 I haven’t received anyyy notices which is so odd. I switched back to electronic mail a week ago though. Today I got an email saying that my recurring payments for this loan have been canceled due to the fact that the Treasury is now servicing the loan.

I called to see if they ever sent a notice for loan 2 and of course there are no live agents to speak to. I am not sure what to do next regarding this. I figure if they didn’t send me a notice then I can dispute the transfer to treasury(?). Or at least buy myself some time?

I also sent an email trying to confirm the status of the payment for loan 1 (I made the payment through the portal). During the phone call I attempted to make a payment to loan 1, just to see what would happen and the message I got back was to call the treasury. So now I’m trying not to spiral at the last bit of money I spent to prevent that one from going to treasury.

I’ll be calling them right after this post, but I have been feeling so alone and stressed about this. I don‘t have a job, the business that I initially took these loans out for is incredibly slow and requires so much of me while I’m hanging by a fucking thread. I have ways of making income but I’m so overwhelmed by this process and the lack of communication. I can’t help but beat myself up for not being on top of it a couple years ago when I had the means to. I haven’t made more than 10k a year in 3 years. I live with my mom and see a talk therapist, emdr therapist, and psychiatrist monthly due to my mental health. My mom has been helping me a lot financially while I get better.

I’m not even sure if this is something that matters in my situation. I’m so afraid of getting on the phone and sharing all of this just for them to be like ”…okay? lol”. Granted I’ll be kicked into gear no matter what but I have not allowed myself to really sit with the weight of this. I’m stressed and panicking because this will make it even harder for me to move out of my mom’s home.

having next to nothing & other debts makes $7k+ feel like Mount Everest.

Unfortunately I was sole proprietor when I filed for eidl
I had zero letters sent to me that my loan was as going to treasury
I got really sick and was unable to pay any bills at all for several months and went back to portal to try to catch up and my loan was at treasury and into collections

I had no idea !!!

I want to pay off principle of
SBA loan and NOT the treasury fee

Tried congressman office and assigned a Gen Z summer intern that honestly had no clue of what I needed at all
Nightmare

I sent dispite letters to treasury and transworld collections and heard nothing back

I’m personally liable and filed extension on taxes this year and expect a refund a definitely need

I’m chronic health problems and a special needs child
I have a nest egg in bank for her if I pass away

To deplete this especially with that 30% fee will devastate me and destitute her

Please anyone with any sound advice thank you

Large EIDL loan w a PG my husband forced me to sign as a 50/50 owner in his company. He died of Cancer in early 2024 and the SBA portal listed our loan as “uncollectible,” I assumed bc of his death. Just got a call from 1 of the collection agencies hired by the Treasury to go after those of us still trying to breathe life into a depressed business and keep our staff employed.
I have been working since b4 his death to turn this around and grow it in hopes of selling in a few years so I can do something I actually enjoy to earn a living. I’m 60 now. It’s a local construction & roofing biz, LLC S-Corp. Anyone already travel this road already?

I had an SBA loan with a personal guarantee and just filed bankruptcy, but it’s a non-consumer because I didn’t have a ton of personal debt. Did anyone else experience this and did the US trustee show up to your hearing?

I filed for Chapter 7 Bankruptcy in April this year. I was making the payments when they gave me hardship accommodations. Once I exhausted all of them I realized I was in bad shape. My business was dying and I was not making the money I once had. I got a job, it did not help that much. I also had credit card debt of $45,000.00 that I racked up trying to maintain my business and life. A car payment. A house payment. I am married, my husband had to file with me. That was a hard conversation. Probably the hardest part of filing. That and losing my credit.

Anyway, It was sooo easy and I wish I had done it earlier. It was discharged and case closed today and the relief I feel is immense. I am in the state of Wisconsin. I was able to keep my house and car. I have 2 new credit cards, one with a $3000.00 limit and one with $2000.00. They are not great terms but I do have them to help rebuild my credit. My EIDL loan was dismissed. Nobody showed up to my 341 meeting and nobody contested my bankruptcy. I still have my house and car. And all my business assets.

Mine cost $3500.00 to file. It took 4 months from start to finish. I had to take 2 credit counseling courses. I had to give my tax filings for the last 3 years. I talked to my lawyer 3 times on the phone, once in person to go over the paperwork and he sat in on my 341 meeting which took all of 5 minutes. Anyway, now I am free and clear from this nightmare.

I thought I would just try my luck and try and request for payment assistance. I am now one payment behind. This is their response: There are no other payment assistance programs for the COVID EIDL loans. These loans cannot be forgiven in full or in part and they are not eligible for additional deferment. I do not want to be forced to file for bankruptcy. I understand I am liable and want to make the payments. I am in the transportation business and the fuel costs are crushing me right now. Why won't they reconsider. What is wrong with these people???

Update: I was able to cancel the ACH last minute. I thought of reaching out to the collections people, but they havent said anything yet so maybe I will just let it be for now.

I still don’t know what will happen with this. Thanks to some of you that said I am legally not liable for it because it is true that I didn’t have a PG and while I signed my name, it was as the officer of the LLC. But since these can’t be forgiven or anything, what happens in the end? Just let it linger?

Hi all,

I have been on a roller coaster of emotions this morning. After being out of the country for two years, I came back and learned that my loan was sent to the treasury. My credit score had also went from the 800s to 676. I figured this had something to do with it.

I got in touch with the treasury who sent me to their contractors, transworld. After talking to them that I had closed the business and had no income from it and used the EIDL to pay backrent, I was given a payment plan. I asked for a lump sump offer and sent in an Offer in Comprise letter for the principal balance of $18k (was $23k with SBA and now at $29k with treasury).

This morning, I received confirmation that the treasury had accepted my offer. I paid the balance immediately and felt relieved that I didn’t have to pay $29k.

Here is the roller coaster- I went in and did the free credit report and realized this was not even in there. I had remembered speaking with SBA and them saying I am still personally responsible which is why I thought it would be in my personal credit.

After researching, I found out that $25k there is no collateral and no personal guarantee. My loan has been with the treasury since later last year yet they hadn’t done anything, but technically I haven’t filed taxes the past two years and no paychecks.

Since the loan really was for the business and was used to pay backrent owed and other expense and unfortunately had to close, how could I have been personally responsible since no PG (though I signed with my name as owner of the LLC). I’ve always been responsible and that’s why I made this a priority and paid it right away but should I have just let it be? I could try to cancel the debit through my bank but I guess that’s why I am here to see what others did since again, there wasn’t anything going on about collections.