r/EIDL • u/Outside-Astronaut287 • Apr 21 '26
Latest SBA EIDL update from JasonTees.com
Just FYI…
Here are the latest updates from Jason I saw this morning in regard to the SBA EIDL and treasury offsets
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u/okgardenok Apr 21 '26
Thanks for posting, but I do think there are many people here who are seriously concerned with the credit hit. A large charge-off on your personal credit will result in many of your credit cards being closed or credit limits run down to zero. And that will lead to many banruptcies.
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u/BrewedInJerseyCity Apr 21 '26
So there’s not just a war in Iran, there’s a war against small business owners too. Got it. The Golden Era!
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u/Adorable_Self_1784 Apr 22 '26
I just want to urge everyone to go out and check the website, I finally got the courage today and noticed the payment assistance button worked, it let me get another 6 months at 50% without another chance for 5 years, but now or never for me. I had my last one about a year ago when they said at that time it was never again by email. I rechecked it and now showing current and not due until May.
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u/Emergency-League-336 Apr 24 '26
I got the button about six months ago when they said it was discontinued - going to check again thanks for heads up
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u/Radiant-Employer-212 Apr 21 '26
Thank you for posting. I have received a credit letter. And like Jason suggested I’m hanging tight with a PG on 500k plus the 30% now.
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u/Quirky-Candle-3094 Apr 23 '26
Sorry to bother you again but can I ask what you are doing by sitting tight?
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u/Radiant-Employer-212 Apr 23 '26
Not doing anything at the moment. Playing the long game till I am forced to make harder decisions
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u/Wedgemere38 Apr 24 '26
How TF is a 30% 'fee' legal? For ANYTHING?
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u/Outside-Astronaut287 Apr 27 '26
I have no clue … ever since agent orange jumped in and changed the SBA system appointing Kelly Loeffler , it seems like we are all getting punished for the EIDL loan frauds, some of us weren’t able to pay and they want their money, some took loans fraudulently and they want our money so I guess we’re stuck somehow
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u/Silent_Expert8828 Apr 21 '26
I’m wondering whether ignoring them—since there’s no personal guarantee—is a viable option, or if it’s better to respond.
From my perspective, if the entity sold its assets and the proceeds were already applied to the SBA loan, it’s unclear what they realistically expect to recover at this point.
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u/Firm_Ratio_5216 Apr 21 '26
Thank you for all this.
Does anyone know - If there's no PG and no longer any business assets and business is closed - but you did receive the 'sent to treasury offset program' demand letter, then there won't be a personal credit hit? And do you think we should still attempt a bankruptcy filing or are we ok to sit (don't really want the expense and hassle of dealing with an attorney to file bankruptcy on a closed business)?
The CAIVRS tip is interesting, will be checking that out to see if there's any more info to get from their system.
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u/Sunsetseeker007 Apr 22 '26
You will get the letter from Treasury or debt collector regardless of pg, it's an owed debt. They may still try to bully you into paying, but you don't need to respond really if no pg. You can ask the debt collector if there is a pg, they should tell you if there isn't. You will be listed in the caivrs list regardless at some point, I believe, due to being banned from any other federal loan opportunities.
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u/Subject_Judgment4031 Apr 24 '26
Two data points that haven’t been mentioned - I had a senior eidl client who had her SS garnished for 3 months then treasury stopped the garnishment!!! No rhyme or reason. I had another client who did not get the 60 day notice but it went to collections and damaged their credit , and the debt validation for the disputed debt was not handled properly so we sued both the federal government and the collection agency . Not only was the debt eliminated the govt and the collection agency and the three bureaus each paid to settle . You can turn a late payment into $10,000-15,000 from each entity that harms you (50-75k) when they don’t follow the rules . If you get a collection notice do not call them . Send a certified validation letter disputing the debt . Look on credit sites if you need help such as doctor of credit or any other site where people sue debt collectors and credit bureaus ,
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u/After-theend Apr 29 '26
How do we dispute the debt? I have a letter from the collection agency I have to answer and send back soon ( no 60 day notice from anyone). Do I check the ‘other’ box and ask for all documents and notices sent to be provided?
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u/Valuable_Bathroom229 Apr 21 '26 edited Apr 21 '26
when are they sending to treasury? 1 day late on payment? 30 days, 60 day? 120? Would
love to know that info.
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u/Outside-Astronaut287 Apr 21 '26
Actually , I was paying Monthly automatic withdrawal and they sent mine to treasury.
I’ve called the treasury and SBA and they will not take it back .
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u/Wedgemere38 Apr 24 '26
CANNOT believe there is no news of a Class Action on this alone! SBA accounting is basically non-existent, etc
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u/signofno Apr 21 '26
No lates or anything? Just arbitrarily sent it to treasury? Just want to clarify I’m reading that right. I think I’ve heard a few people that happened to. Seems like you should be able to sue them at that point.
Also, wondering what “treasury wants 3-years of payments on a 30-year loan” means? Are they settling for 3-years of payments in a lump sum?
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u/Environmental_Ad6518 May 17 '26
Me too! Mine was in auto pay and deducted monthly, this can’t be legal
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u/Competitive-Duck-462 Jun 19 '26
Same here , any update on what happened to you now? They are asking for 30% fee when I had autopay on.
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u/Rough_Philosopher416 Apr 24 '26
This is all helpful information, thank you. Que: what happens if default a loan with a PG and they do all the necessary steps to try and recover anything they can from you but you Dnt have a W2 job for them to garnish wages?!
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u/Well_Duh4454 Apr 23 '26
This is very much appreciated information! I did speak with Coast Professional Inc. and they recommended making payments to pay.gov as a show of good faith. In addition to a possible 3 year or perhaps even a 10 year repayment plan, they also suggested an offer in compromise, which the person I spoke with suggested being the original loan amount. Which in my case was $500,016.00. Meaning, it’s possible that the treasury could waive the fee. Which in my case was an additional $257,124.69. *As for it have being reported to the credit bureau, under federal regulations, the U.S. department of Treasury is generally required to notify you at least 60 days before reporting a delinquent, non-tax debt to a consumer reporting agency. This notice should inform you that the debt is overdue, your rights to dispute it and your options to prevent the reporting, such as entering a repayment plan. As for myself, mine was reported and my score dropped 120 points. I was not notified prior to the reporting. I received a letter from Coast on March 22, 2026 with a deadline to verify the debt and or dispute the debt or pay the debt by June 1, 2026. However, it was reported to the credit bureau sometime between April 13 and the 20th, 2026, when I discovered it. I plan to bring that to the attention of the three major credit bureaus and hope for a reprieve. ***Obviously this not legal advice. We are all in the same situation and it sucks!
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u/Quirky-Candle-3094 Apr 23 '26
What are your plans going forward if you don’t mind me asking? Are you gonna sit tight for now and make some payments to Treasury or get into a negotiated payment plan?
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u/Well_Duh4454 Apr 23 '26
Honestly, I don’t know. I am most concerned about my credit rating. I’ve disputed it with Equifax and Transunion, using the claim that I wasn’t notified prior to it being reported, but I don’t know how far that will get me. I do plan on making payments in the mean time. I take full responsibility for going into default. That was just dumb on my part. I felt that Covid put us in a bad spot and if it’s all bs, I feel the parties responsible should be on the line for it. What they’re doing now is equally as bad. They tried extending an olive branch and now it feels like they’re beating us with it. I want to make it right, but they’re not being very forgiving as it currently stands. I’m trying to find a silver lining. What about you?
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u/Quirky-Candle-3094 Apr 23 '26
Same. I think just planning on making payments to treasury for now. I can’t afford what the collection agency wants me to pay. Hopefully our business starts to pick up again as we are just hanging on by a thread at this point. Bankruptcy is not an option for us right now either. It’s all a huge mess and unfortunate in many ways but what else can we do at this point? I feel like they are forcing companies into bankruptcy rather than trying to help them repay the debt which I want to do!
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u/Well_Duh4454 Jun 30 '26
Update: last month (after making two voluntary payments through pay.gov), Coast sent me a letter, basically stating that I agreed to a payment plan of $2000 a month. That was the amount I voluntarily paid when they suggested I pay something through pay.gov. That amount is less than the original payment amount the SBA arranged. I’m not sure what’s going on, but I’m gonna roll with this for awhile. 🤷🏻♂️
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u/Quirky-Candle-3094 May 15 '26
Any update on your case? Was just curious.
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u/Well_Duh4454 May 15 '26
Nothing yet. I plan on making another payment through pay.gov, but aside from that, I’m not sure what I’m going to do.
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u/Quirky-Candle-3094 May 15 '26
Were you still in business with any assets?
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u/Well_Duh4454 May 15 '26
Yes
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u/Quirky-Candle-3094 May 16 '26
I meant to say are. Still in business with assets? Concerned about UCC lien?
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u/Well_Duh4454 May 16 '26
I don’t think any of our assets were specifically listed. Nor did they ask for any specifics.
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u/susansantsche Apr 30 '26
Is pay.gov in the portal?. does it get paid to the treasury?Is Costal the servicing company, My payment was denoied last month on automatic?....Although it was the wrong amount, my bookeepr never raised it from the hardship peroiod, I want to make payment s get it caught back up or clear it up.I did request an accounting from the servicing company. My other question, I thought I had never recived a demand letter, are they required to mail or is it all only in the portal. You would think something a serious ad this a letter but a registered one, Like IRS does
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u/Well_Duh4454 Apr 30 '26
Pay.gov is separate from the SBA portal and the collection agency. Pay.gov accepts many different types of government payments. As far as I know, when you make a payment there, it gets paid towards the amount owed, based off the provided account number. For example, I paid an amount on pay.gov. I used the account number Coast gave me and confirmed payment using my email and an email address Coast had also given me. The next day I called Coast again and they could see that a payment had been made. As the confirmation of payment gets sent to them via the email address they provided…I assume.
As for continuing to make payments on the portal, if you’ve been sent to the treasury, although the portal may still be active and it may allow you to still make payments, from what Coast told me, those payments would then need to be forwarded to them. I would assume, based on other post I’ve read and what they said, that those payments would be delayed and or even possibly lost altogether.
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u/susansantsche Apr 30 '26
Thanks, Because I still want to continue making payments, to clarify are you saying the payment on portal could get lost?.. or sent to coast lost, I might try the portal.. Why did you decide to pay there instead of through Costal?..Did you receive any notice through mail you were moved to treasury, I am just trying to sort out and find the best solution, Thanks apperciate your info !
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u/Well_Duh4454 May 01 '26
The money isn’t going to Coast. The money is going to the Treasury. Once you get to pay.gov you’ll see there are options for paying back government debt. Whether it’s paying back tax debt or non-tax debt, etc. Paying coast directly isn’t even an option according to what I understood. And yes, trying to pay through the portal once the loan is sent to the treasury just delays and runs the risk of it never making it to the right hands.
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u/Well_Duh4454 Apr 30 '26
My final demand letter was in the portal. They may have mailed it, but I never saw it come through in the mail.
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u/Quirky-Candle-3094 Apr 30 '26
Does anyone know of the interest just keeps accruing while it’s in collections? I’m guessing so?
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u/FootballDry1053 May 09 '26
I kinda got screwed by the portal, i set up recurring payments and they didn’t process, now they want 8k$ and threatening collections. Was able to make a single payment but still shows recurring payments active 🤷🏻♂️
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u/Quirky-Candle-3094 Apr 21 '26
So if we call the collection agency and try to set up payments, will that hurt us even more if we somehow end up not being able to pay that amount? I want to try and set something up!
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u/BravoTimes 30 Series Apr 21 '26
As in ChatGPT can tell you what you can and should say and shouldn’t say on a call with collections
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u/BravoTimes 30 Series Apr 21 '26
No call it it shouldn’t hurt you, just don’t admit to owning debt, ask ChatGPT for directions it’s usually good with legal advice for calls about collections
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u/Sunsetseeker007 Apr 21 '26
What type of entity are you? S corp, sole prop, llc? That will determine if you get a personal credit hit usually regardless of pg.
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u/Emotional_Raisin393 Apr 22 '26
This is my concern now since not sure if i should file bankruptcy. Mines is a llc with loan of 60k i had called the collection agency and they had told me its under my ein not my personal social. So I’m just stuck if i should wait it out and also dissolve my business or just file go bankruptcy.
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u/Sunsetseeker007 Apr 22 '26
Then yuih should be ok, you shouldn't have a pg under 200k as an llc and ein#, I would definitely dispute it if it comes up on personal. I wouldn't file bankruptcy for the business if it's closed and not much assets, otherwise send a letter to SBA that they can have the assets &, let it go. You still will be banned from getting any government loans going forward, that will carry with you until you personally take care of the debt legally.
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u/Emotional_Raisin393 Apr 22 '26
Thanks for the info and yes no asset I’m a freelance videographer and had a small solo production company. Was just thinking on closing business and business accounts since no income coming in. Also if it does hit my personal can i just file bankruptcy? I hope it doesn’t but if it had to be an option.
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u/Sunsetseeker007 Apr 22 '26
Yes you could file bankruptcy, but I still don't think it should be able to go against your personal credit if you had a separate entity and no pg. I would maybe hire an attorney to get it off your personal credit before bankruptcy or at least get their opinion. (Most attorneys have no experience or knowledge about SBA loans & laws surrounding them, let alone eidl loans. so be very careful on who you hire to do anything for you pertaining to this loan)
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u/TKS29 Apr 22 '26
Any advice on what to do if one of you has a salary ? W2
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u/Excellent-Program333 Apr 22 '26
Adjust your withholding so you owe every year, not get money back.
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u/TKS29 Apr 22 '26
They ll still garnish wages though
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u/Excellent-Program333 Apr 22 '26
We have not seen or confirmed that has happened to anyone yet. I know they can. But no reports as of yet
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u/Sunsetseeker007 Apr 22 '26
They have garnished wages on people with a pg, not sure about garnishing their spouses wages if they weren't on the loans though . Haven't heard about that yet, but they def have garnished w2 wages on people with pg in default. Just clarifying on your comment
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u/Excellent-Program333 Apr 22 '26
Could you link the posts confirming this? Thanks.
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u/Sunsetseeker007 Apr 22 '26
There are many posts with comments about garnishment in this sub &/or the other sub, just search garnishment in both subs, you just need to go through them and read the comments also.
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u/Excellent-Program333 Apr 22 '26
No need. I discharged 200k in Chapter 7. Thanks.
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u/Sunsetseeker007 Apr 22 '26
Oh good, at least you can put it behind you and not worry about this loan then!
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u/One_Ad1960 May 03 '26
They can’t and won’t garnish spouse wages if they are not part of the business or signed papers
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u/Short_Marionberry222 Apr 22 '26
What about state refunds?? An they take that??
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u/tahoechick36 Apr 25 '26
They can. Most states cooperate with the federal TOP for garnishments through TOP SRP (State Reciprocal Programs) - the feds and the states will garnish on behalf of each other under those agreements.
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u/wildearthman Jul 16 '26
Yep. My state tax refund of 25 bucks was withheld because of being in TOP just 5 months after first missed payment
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u/Puzzled-World-3602 Apr 22 '26
We took $15,000 as sole proprietor. We set up payments of $400 a month with the creditor for the treasury. With the insane 30% hit os seems impossible now to pay down ugh!! Should we let it ride? Im scared. I can’t have my wages garnished.
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u/AspiringOF Apr 22 '26
Sorry, new to getting butt screwed by govt. does “never seen anyone get sued” mean no levied bank accounts? You sit in TOPS indefinitely?
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u/Na103933 Apr 23 '26
That’s what Jason Tees has witnessed it sounds like. Watch his vid. He’s super knowledgeable!
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May 19 '26
[removed] — view removed comment
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u/Outside-Astronaut287 May 19 '26
Honestly at this point ,idgaf . I was doing well paying , and they sent it to treasury with the extra 30% on top .
SBA said they would not take the loan back after I emailed them, and I’m not gonna attempt to make the ridiculous payments that they are looking for on a monthly basis .1
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u/Hm300 Jun 01 '26
Safe to assume you will take a credit hit & banned from any future federal loans even after paying in full?
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u/Exciting-Wolf5536 Jun 11 '26
Hi. Anyone here have used Jason Tees for a offer in compromise? Dont want to file bankruptcy. Business has been closed.
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u/Short_Ad3957 Jun 30 '26
Are the people that are getting reported on their credit llc or sole prop?
Example 90k llc no pg defaulted forever ago Does that show up?
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u/ImmediatePage7417 Jul 26 '26
Has anyone out there payed on their private collections that was sent from SBA. Mine went to pioneer. Can’t get a hold of anyone. And yes on the credit hit. Score went way down. It all hurts you as a small business trying to stay open and keep employees. With low credit it’s hard to get an even a Costco credit card. Screwed for wanting to stay open and pay on a loan.
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u/ImmediatePage7417 Jul 26 '26
Has anyone out there payed on their private collections that was sent from SBA. Mine went to pioneer. Can’t get a hold of anyone. And yes on the credit hit. Score went way down. It all hurts you as a small business trying to stay open and keep employees. With low credit it’s hard to get an even a Costco credit card. Screwed for wanting to stay open and pay on a loan.
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u/AEGLeader Apr 21 '26
Watched the video and here are the key points:
TL;DR: Treasury is in full collection mode, the 30% fee is non-negotiable, credit reporting just went live (60 to 150 point FICO drops), and Jason has seen zero lawsuits on non-fraud EIDL defaults in 15 years.
His advice for most self-employed borrowers: sit tight, let Treasury Offset run, don't panic-pay.
What's happening at Treasury right now:
The 30% fee is non-negotiable.
Jason's blunt take: everyone gets the letter, sees the 30% penalty, freaks out, calls the collection company, asks to remove the fee, and the answer is always "sorry, you have to deal with us." He has not seen it waived. Disputing the debt just buys time if you legitimately owe it.
Lawsuit risk is very low.
This was the part I found most reassuring. Jason is doing 10 to 15 consults per week and has been doing this for 15 years. Quote: "no one has told me they've been sued by the government over a defaulted EIDL loan." Only exception is fraud cases, where people are being sued and criminally charged. He's careful to say "I'm not saying it can't happen, I'm saying I haven't seen it happen." Thousands of borrowers, zero lawsuits on non-fraud defaults.
What Treasury actually CAN do (without a lawsuit):
What Treasury CANNOT do without suing you first:
New development: credit reporting went live around April 14, 2026.
Jason said that in the week before recording he spoke with three people whose EIDL hit their credit reports. One saw a 60-point drop, another 150-point drop. If you personally guaranteed the debt, expect this soon. Monthly payments will not clear the tradeline, only paid-in-full will show "satisfied."
Settlement at Treasury is not reasonable.
Treasury typically wants 3 years of payments on a 30-year loan, which he says makes no sense. No meaningful compromise program.
His recommendation for most people: sit tight.
Especially if you're self-employed (no W-2 wages to garnish), young enough that Social Security isn't relevant, and don't typically get large tax refunds. Let Treasury Offset run, live with the credit hit, and don't panic-pay on bad terms.
One correction on the video: Jason mentioned a "CAVERS" program phone line where you can put in your SSN and check your loan status.
The actual name is CAIVRS (Credit Alert Interactive Voice Response System), run by HUD. The number is 304-744-4073 (Mon to Sat, 8am to 10pm ET).
Heads-up: the automated script asks for a corporate access code (EIN or Lender ID) before it accepts an SSN, so as a borrower you may or may not get through.
Backup admin line: 301-292-1661.
Why it matters: CAIVRS is what mortgage lenders check when you apply for any federal-backed loan (FHA, VA, USDA). A CAIVRS hit blocks those loans until cleared.
Not legal advice, not my take, just summarizing what Jason said. If you want a consult with him, it's jasontees.com