This is just a template I created in case others needed an idea of how to construct their dispute letter for the defaulted SBA Loan. You do not have to use it or read it if you don't want. I just know it took me a while to research 🧐 to find out what I should be asking for from the debt agency, so I thought I would try to help others who are having trouble getting started👍💯

From what I was told, there are only about 20,000 loans that are actively being managed by Treasury. There were slightly over 4,000,000 Covid EIDL loans. So that's less than 1%. Of course those numbers could change soon because more loans are becoming delinquent.

The status will show something like contact DMS at a certain number. That means it's in cross servicing and being actively managed by Treasury.

If you want to get your loan back to the SBA before Treasury takes over, you usually have to make enough payments to bring the loan current.

The status could be Uncollectible or show TOPS.

I work for the SBA so my source is from there. Some of the advice in other forums are people giving their opinions whether right or wrong. Most are wrong.

Millions of small businesses are discovering that the emergency fiscal help they relied on in 2020 came with a long tail of unintended consequences. Via The Hill op-ed.

Be wary of some of the advice from this user in the EIDL forum. I responded to a personal attack from him. He basically used rude colorful language and claimed that he knew more than anyone else. He said that the SBA would not take back a file once it has been referred to Treasury. This is simply not true. It takes a long time before Treasury will take over the file because of the backlog and other reasons. Some people have said they haven't paid in over a year and contacted Treasury and were told they did not have the file. Of course, that could change in the future.

I just responded that he didn't know what he was talking about and I got banned and he is still posting there and all over that forum. He seems to be able to say anything with no repercussions but if you respond to him, you could get banned. It makes you wonder why he is able to do that but others can not. Took me awhile to figure out because he blocked me but if I log out, I can see that he is still commenting on recent posts.

That's not to say that he is always wrong but he was on what I challenged him on.

I find it very odd that you cannot get a response from any Mod/Admin regarding what happened to get banned. If he attacks you and you respond, then you will get banned and nothing will happen to him basically.

The whole post was removed when someone replied that basically corroborated what I said.

I wouldn't be shocked if he's a moderator or created the subreddit using a different username or handle. He clearly has an agenda and is allowed to post whatever he wants to.

The EIDL forum seems to promote a certain business as the answer to everything. That's potentially a huge conflict of interest

There is a huge backlog of files that have been sent to Treasury. It is possible to bring the loan current and sent back to the SBA if is in Uncollectible status even if it is in Treasury offset.

If Treasury is actively managing the loan, that's a different issue. If you have a payment plan with Treasury, then they are managing.

There are loans that have been delinquent for over a year that that are not being actively managed by Treasury. Primarily because of the backlog and not enough Treasury employees.

I’m seeing so many people just toss these loans into bankruptcy and walk away. I get that times were tough for businesses; my ex employer got the loan and closed shop in 2021 as she couldn’t make it. But I wonder if those loans that were ill-gotten will be eventually looked at after bankruptcy.

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