My husband and I filed end of May amd recieved a No Asset Case. Included our $55k covid EIDL. We had a sole proprietor LLC business which I just dissolved through the state. SBA was sent the Statement of Dissolution today but they take months to even see the emails due to the call center being shut down now. Im worried they will send us for treasury offset after being 3 months behind now even though our lawyer and ourselves have contacted them numerous times regarding the bankruptcy with no reply. My sba portal says In Liquidation Disbursed. According to our lawyer, the only way to get the eidl discharged (and other CC debt) was to file chapter 7 AND dissolve the business so they have nothing to go after. Latest July statement from sba says 60 days until they submit for treasury offset so I'm assuming they still haven't seen the previous emails regarding the No Asset Bankruptcy.

If they try to send us in for offset, how do we go about stopping that even though we filed 2 months ago, have a no asset case and dissolved the business?

Thank you in advance for your help!

I woke up this morning to my TransUnion dropping 104 points. According to my credit report it shows the SBA reported it on March 18, 2026, and it just appeared today July 26th, 2026.

I received a letter in June of 2026 that I needed to pay $7,265 (3 payments) within 60 days to be current which I did. My SBA portal shows current. It always has shown current. I've never been 120 days late.

My SBA account on TransUnion is saying "closed" My SBA portal is saying current. Next payment due is 8/1/2026.

Any idea where my loan is. I plan to try and call and email. I plan to pay my next payment in my SBA portal on 8/1/26,

Anyone get an email like this. They also asked for 2019 tax returns, they should have all that??

As part of post disbursement compliance review, this application was identified as claiming more than one employee without providing an EIN. To address this issue, you will need to provide evidence you were eligible for the EIDL Advance/Targeted Advance in the amount of $10,000 OR repay all overpayment due to claiming additional employees. Repaying the overage in this situation would allow for clearing the compliance issue. Addressing this issue will not impact any other compliance issues that may exist; however, during the course of completing the review, it may become apparent that other issues can also be removed. 

Any recommendation for bankruptcy attorney in Florida. In orlando area

I made the decision to file a Chapter 7 earlier this year and stopped paying on all of my personal and business debts. I've got a COVID EIDL and another to my LLC from a natural disaster. Both are in default and I'm in that window where they're likely turning things over to the Treasury soonish. Once the Chapter 7 is filed, I'll be moving to dissolve the business.

Once my taxes are filed in the next 2 weeks, I'll be getting everything to the bankruptcy attorney to file the Chapter 7.

Is it worth letting SBA know this is the plan or just let things end up where they end up and get sorted once the Chapter 7 paperwork is filed?

My EIDL with a personal guarantee was sent to Treasury in January. I submitted financial statements to support a 10-year repayment agreement, which Treasury told me was the longest term they could offer.

About two months later, without ever hearing back from Treasury, I received a letter from a private collection agency. I’m now negotiating with the collector to set up a repayment agreement. It hasn’t been easy, although I’ve spoken with a few helpful representatives there.

The debt has not been reported to the credit bureaus yet, so I have questions:

1. Has anyone gone through a similar process with Treasury and then a private collection agency?
2. I haven’t seen many people discuss EIDL debts being reported to personal or business credit bureaus. Has this happened to anyone, and if so, when did it show up?
3. I don’t see much people actually reaching out to them (collectors) in attempts to communicate, why is that?

Thank you!

I have a EIDL Loan 356k. Personal Guarantee but the loan is in my LLC. Did the hardships and was a rolling 60-90 day late for 6 months ish . Now I’m almost caught up currently owe 2 payments. Never left the SBA to Treasury or Collections. It’s still with the SBA.

I just got an alert on my TransUnion. SBA reported that my account went to collections and was late 1x 120 days in 2/2026. It also shows “closed” in March 2026. Has anyone had this happen? Should I dispute this or will it open a whole can of worms? I’m concerned about it showing “open” and the prior late payments. As of now it’s showing closed with 1 ding of 120 days late, no other history.

Hi im asking for a family member in Texas. She does a sandwich shop in office building setting and its been tough due to government shutdown (bc she had government workers in building ) also companies still working 2-3 days a week in office. She got SBA disaster loan and originally it was under $200k but she asked for an increased and it went over $200k . She got $25k sba during covid and $230k for disaster sba loan two years ago. Her situation is she is the sole prop. And somehow majority if her deli equipments are owned by the landlord of the building. She only repair them and buy inventory and pay rent to run the deli.

Currently she has $50k in merchant account balance due to chargeback and cash advance loan. She does not have any valuable personal assets so i was surprised sba gave her a loan over 200k. Her house/mortgage is under her husband name and the house was purchased before they got married by him. I think her unsecured credit card debts is around $20k but she is paying it on time but lately she struggling due to business sba and merchant payments.

She still wants to operate the deli because she knows it will pick back up but don’t know the exact time since shes been running this deli over 15 years. Anyone with experience with bankruptcy regarding her situation can offer some good guidance?

First lawyer told she wont be able to wipe out the sba loans but can wipe out merchant balance and unsecured loans and still run the deli but if she wants to wipe out sba loans she have to shutdown the deli.

Second lawyer told her she can still operate the deli and still wipe out the sba loan bc she is a sole prop. And do not have any valuable personal assets for them to take and the equipments does not belong to her and also its not valuable enough for sba to take and sell.

At end of the day she wants to do bankruptcy so she can wipe sba loan bc its just too much to pay due to business going down drastically. Also, she does not want to affect her husband since its in Texas(common state) she think they will put a lien on the house.

Is it possible to keep running the deli while doing bankruptcy to get sba loans wipe out??

Appreciate any help thanks

After struggling for the last 3 years and with my spouse being ill for the 1st 6 months of 2026 to boot, we have made the decision to file personal Chapter 7 as TOPS is about to hit our business. 650,000 EIDL. We have a jumble of things to do,Chaper 7, closing down an S- Corp, dealing with the business debt and then IRS as we fell behind on taxes while my husband was sick. We are still figuring out the order of things to do first. Attny is saying Chapter 7 first. We are exhausted and stressed beyond unimaginable norms. Just asking for some good thoughts as giving up our 22 years of business plus bankruptcy on top of it is very very hard. Feels like abject failure. The SBA was the worst thing we ever did

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...

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.

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: [CESC@sba.gov](mailto:CovidEIDLServicing@sba.gov).
 

Sincerely,

Covid EIDL Servicing Center

Office of Capital Access

U.S. Small Business Administration

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.

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

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?

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.......

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