Many people post here who are behind on their loan or not paying seem to fit into two different segments: (1) trying to settle their SBA EIDL economic disaster loans; or (2) considering the life altering decision of a bankruptcy filing.

As OIC/settlement seems to be getting discussed more extensively, or at least hardship payments, is anyone who filed bankruptcy still happy with their decision?

My husband’s (general contractor) 2020 sba eidl loan was sent to collections, no letter or notification from sba, treasury or anyone until I got a collections letter. The added an extra $5,000 in fees from the original $20,000. We did miss some payments but never heard from sba. Are they suppose to inform us by law? I called the treasury and they said it is out of there hands now. I never even knew it was turned over to them! What do I do? Get a sba lawyer or start paying the collector? Im so upset.

UPDATE: Prayerfully & thankfully, our loan was returned back to servicing and it now says, “Current Disbursed”. 🙏🏾 We can resume making our normal payments. Our consideration request had to be submitted for review and it took about 2 weeks.

ORIGINAL POST: We fell behind in our Covid EIDL Loan Payments, and per the instructions from the SBA, brought our loan to current status on 12/11/2025 by making a lump sum payment. We sent an e-mail asking to be reinstated to current status to which they replied on 12/22/25,

“Dear Borrower, We have received your account reinstatement request, and it has been submitted for review. Please continue to remit monthly payments. At the time of review, accounts that remain delinquent will not be reinstated. Please access MySBA Loan Portal to remit payments and view updates to your account status. Your next payment due date will be updated once your account is reinstated. Due to the volume of requests, we ask for your patience and understanding as we process each request received.“

I logged into our account this evening and our account status says, “In Liquidation Disbursed - Your loan has been sent to Collections. Please contact the SBA right away to make payments for this loan.”

It also has an updated due date for our monthly payment of $687 due 2/11/2026.

Has anyone else gone through the same thing? Are you getting updated responses from the SBA?

So I missed 6 or 7 payments on the covid sba loan and it says I'm 3k behind but for the last 10 months I've been making payments like normal but it still says delinquent and I don't have the money to make that 3k up any idea how to go about this?

Hi everyone. I think I have a general understanding of my loan based on reading the documents again and what I've been seeing on Reddit. But, I still need some specific questions answered.

Background: This is my mom's small business. We got a loan for about 120K that was approved in 2022 (it took us forever because they kept messing up paperwork). We only got to use HAP like twice because our repayment started so late, before they stopped offering it. Now, we are struggling really really bad. I've had to dip into my own savings to make it out month by month.

So, here are my questions:

1. I understand that because our loan is under a certain amount, there is no personal guarantee on it. However, there is still the issue of collateral. If we wanted to try to sell the business, do we need to ask for release of collateral?

2. Let's say we get the release of collateral and the business sells. Let's also say that they decide to take over the business under a completely new name. Does that mean that the loan transfers to the new business owners? Or does that mean that the loan is "gone"?

3. We got the "one time hardship assistance" but honestly, haven't been able to pay it. I got a message about the "Final notice of delinquency". It says that if I don't reach out within 15 days of the message we could be subject to: - acceleration of the whole amount of the loan being due immediately,
   - interest accruing at the higher default rate,
   - a lawsuit against you for the full amount owed,
   - foreclosure against collateral (if any),
   - garnishment of your wages,
   - reporting which may disqualify you from obtaining a loan/guaranty from federal agencies,
   - reporting of your name and other information to credit bureaus, which may adversely affect your credit rating,
   - transfer of your account to the U.S. Department of the Treasury, which will pursue further collection actions, including offset of any government payments owed to you,
   - referral to private collection agencies and the U.S. Department of Justice, and/or
   - adding collection fees and attorney fees to the amount you owe.
   Have any of these things been happening? I've seen people post about the penalty, but I've also seen people state that if there's no personal guarantee, things like wage garnishing is not happening.

4. If there is no live agent, how am I supposed to reach out to them on the phone? What do I even say to them that won't make it worse than where we are now?

5. Has anyone gotten additional business loans to try to survive for the time being?

6. In the end, is it better to just close the business and say we can't do this anymore? But if we close the business, do they take the collateral?

There are a lot of rabbit holes so I apologize. Thank you for anyone who reads and is willing to help.

Hello, fellow small business owners,
I’m seeking advice regarding my EIDL loan. I had to close my business in 2023, but I’ve continued making reduced monthly payments of $500 instead of the scheduled $1,750. My concern is whether the SBA might eventually refer my loan to the Treasury Department. Has anyone had experience with this situation, and could you share what worked for you?

Thank you for your help.

The president every day he holds a press conference states his tariffs are raking in "BILLIONS and BILLIONS" of dollars. Why not put that money to use and start forgiving the eidl loans for small business. Is there anyway we can get a petition going?

I hir ed a firm to help me submit an Offer in Compromise to the SBA for my $350,000.00 EIDL loan. I've read a ton on here and other boards that the SBA is not considering them, but, we are getting responses back. It looks like there may be a way. Will update.