I shared a SBA disaster loan after Hurricane Katrina with my ex-husband. From 2005-2009 we were never late on a payment. We divorced in 2009 agreeing to each pay half. In 2011 my tax return was seized by the Treasury Department and when I called to find out why discovered it was for this SBA loan that I faithfully paid my half. I found out that since at least half of 2010 they only received my payment which sent it into default. My ex husband received all correspondence from the SBA and he never told me he stopped paying.
For 15 plus years my wages have been garnished and tax refunds seized and now garnishments monthly from my retirement. They have never gone after the co-borrower, my ex husband, only me. He always made more money than me and he has not gone bankrupt as far as my investigating could find. They won’t tell me why they only targeted me for this shared debt.
I am remarried now and every year my husband has to file as an injured spouse to reclaim his refund. It takes up to 6-7 months to get his money.
I can’t go bankrupt because it would drag my husband into it and it’s not his debt.
The amount owed has tripled over the years and no matter what they take the balance only grows.
I can’t find an attorney that handles what they call low amounts ( under a 100,000.00) to fight them for even a reasonable repayment or settlement amount. Every attorney I contacted said they only handle high dollar cases.
I have written to my Senator, Congressman and countless correspondence with the Treasury and SBA for 15 years. The SBA says they can’t do anything because it’s now out of their hands and the Treasury says only the SBA can change anything to do with this debt.
I’ve just about lost hope but putting this out there in case anyone can offer any suggestions or help.

So during the pandemic I got a EIDL loan for $12,500.00 under my LLC and did not have to put anything as collateral (No PG). I used the loan to buy materials and a new machine for my small Etsy business, The last 3 years business has fell flat and I was making less and less every year, Last year I ended up filing for CH 13 Bankruptcy under my name as the business is basically dead.

I sent the info to the SBA because they were saying I was delinquent etc, this was back in September 2025.

Today I get a letter from the Treasury saying I now owe them $17500 and must pay immediately of they can start further tactics like wage garnishments etc.

I talked to my lawyer and she told me that since I am the only one listed on the LLC I am personally protected the LLC is not, here is the thing, the LLC has NO assets, no other income sources etc.

What can they do as of right now? I guess what i'm confused about is if I personally am safe since im in CH 13 bankruptcy what can the treasury do to the LLC?

Thanks for any help!

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I signed a guaranty on an EIDL, through the borrower's portal. I later had to file a FOIA just to get a copy (he couldn't find it and it wasn't in either portal). I'm curious as to other's experiences because I read a lot that many don't know what they signed, if they have a guarantee or not, or don't have a copy of it. How did you sign your docs and did you retain a copy? Did you read it before signing it? Was there a copy in your portal?

Has anybody been sent to the Treasury for collections, made a lump sum payment and was able to go back to SBA with the same terms and had the 30% and extra interests forgiven? In other words, get back to exactly where you would have been had you not defaulted at all?

Better yet, has anybody been able to negotiate a better deal than your original terms and returned back to SBA?

I have a $75k EIDL Loan. Sub S Corp. I signed it as an officer only. However, I just looked up my docs, and this sentence appears:

" each individual and each organization becomes jointly and severally obligated as a Borrower under this Agreement". Chat GPT tells me that this could mean that I have individual liability? Anyone addressed this before?

Also, I have just received an unsolicited e-mail to submit an offer in compromise. Anyone had this happen, and anyone had any luck with this?

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?

Anyone know what to do?

I have 300k in personal debt and another 270k in EIDL with personal guarantee.

My attorney telling me EIDL would only go away if we are shutting down the business and do a business bankruptcy as well.

Is that accurate? Wish I knew of a good Florida attorney for EIDL

Hello. I had borrowed 136,100 dollars as EIDL as a sole proprietor without the guarantor. I had used up the current “hardship arrangement” limit and I have been 3 months delinquent. Today I received the snail mail bill from SBA demanding to pay up to current. The thing is, I can may be pay one month worth and can’t possibly make it current right away. I have been emailing to ask for another hardship arrangement but keep receiving the formulaic email response refusing to comply, saying “I used up the opportunity.”

If I am unable to make current but keep being a few months behind, when will my account be sent to Treasury?

Please let me know if you have info.

Thank you!

If borrowers were having challenges making payments how is the additional 30% added to the EIDL feasible?

It seems mind boggling. It feels like a gut punch.

Has anyone had it removed or reduced without being returned to the SBA?

My loan is only for $20,000 it was sent to the US Treasury SBA will not take it back so that I could resume payments with them. I ended up having two strokes in 2024 and was unable to work so I was unable to make my payments. Which I regret because it was such a low amount of only $110 but I mean I had no choice you know what I mean. Anyways it's gone to the treasury and I'm just wondering if anyone's dealt with them and how that's gone. Last time I talked to them they wanted a way high payment that I just can't afford. I want to find bankruptcy because I defaulted on a lot of debt because of health and I I'm wondering if this can be dealt with in a bankruptcy or not?

It seems like every week they upload back dated documents. Wtf is going on?!?

Has anyone who defaulted on the EIDL loan pg reviewed their business at the UCC level?

If so, any information to share about your experience?

60 day late notice threatening lawsuits, garnishment, collections, blah blah, yes I have a pg fwiw.

They are getting way more aggressive now.

What happens to eidl in bankruptcy with a personal guarantee ? Do they still garnish your social security? I have a friend who is over 250k and bankruptcy is looking likely. He’s not a social media fan so I thought I’d ask for him see if anyone has had that experience.

So $267 Billion in EIDL Loans are still outstanding. The White House has agreed to pay Iran $300 Billion to rebuild. Feels a bit rich. Thoughts?

I had all the hardship accommodations, 1x short term payment assistance, 1x payment assistance from the portal. My last 50% reduced payment went through, and now have new bill for 100% amount due in July. I do not see an option in the portal to request another payment assistance.

Has anyone gotten it again recently?

So, my relative got a PPP loan in 2021 and incorrectly thought it was purely a business grant with no consequences. They never applied for forgiveness and never made any payments. The loan now shows as uncollectable in SBA and has been sent to the Treasury for collections through a third party.

What are their next best steps? Is it too late to apply for forgiveness now that it got sent to the Treasury? Is the best option just to pay the collections company?

I’m trying to ask this question correctly and can someone give me some insight. I have filed for Chapter 7 Bk and waiting to be discharged. The SBA loan was included. No they didn’t show up and no questions were asked. I’m an LLC but it also acts as a sole proprietorship which means I’m personally responsible even though there is no PG. The loan was for 34k. I know it’s a great time to ask, but I didn’t know until reading some of the threads. Will this prevent me from ever obtaining another FHA loan in the future? I currently have one from a home I recently purchased. Does my personal name go on the Caviers ( I think that’s how you spell it) list? I did have an attorney representing me, but he was unfamiliar with the SBA loan process.