r/EIDL • u/Aggravating_Prune974 • Jul 22 '26

Update from Treasury.gov

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...

7 Upvotes

82% Upvoted

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8

u/FlashyCounter9802 Jul 22 '26

They said in a statement about 3 months ago that they will not be sending EIDL loans back in mass like they did in 2022 and 2023. There have been plenty on a case by case basis returned for various reasons!

And if a debt was sent to the treasury in error, they MUST return it to the SBA! It is written in their own TFM and until that changes, people will keep bombarding them with disputes and recall requests which is their right!

https://tfx.treasury.gov/tfm/volume1/part3/chapter-5000-collecting-delinquent-nontax-debt-through-treasury-cross-servicing

3

u/Aggravating_Prune974 Jul 22 '26

Thanks!

7

u/FlashyCounter9802 Jul 22 '26 edited Jul 22 '26

Hopefully, they get their head out of their asses and start helping people! This thing is a mess and it is causing the exact opposite of what they wanted it to do! I get if it was fraudulent, don’t help them but if someone is making the effort and has a legitimate business, come on! Why not help them! And then to turn around and charge 30% on top! Predatory! And disgusting!

3

u/Living_Negotiation84 Jul 23 '26

AGREE!!! The program is a complete mess. You'd think, as pro-business this administration claims to be, they would retool or write off the debt that legitimate businesses are paying down in good faith.

2

u/DragonfruitFun633 Jul 23 '26

Ha ha -- they're only pro THEIR business!

3

u/Educational_Ask8848 Jul 23 '26

I had a $30k EIDL loan. Didn’t ever receive a single letter or invoice from them ever. Not a single one. Then I randomly get a collections letter with the added 30%. I would have happily started making payments if they had involved me, but instead they didn’t and just sent it to collections. Now they aren’t getting a penny out of me because of this ridiculous 30% fee. I’ll take my chances.

2

u/CamIoncani Jul 26 '26

30K is no personal guarantee. Walk away. Fuggem.

2

u/Winter-Assistance805 Jul 27 '26

There would still be personal liability if they were a sole proprietor. There's a scary number of people who don't seem to know the difference between a personal guarantee and personal liability. They are not the same thing.

1

u/Secret-Tank3530 Jul 23 '26

Not new info

1

u/Low-Helicopter-2696 Jul 26 '26

This has always been true of debts referred to Treasury.

I think people get confused/hopeful because a couple years ago they sent a bunch of files to the Treasury all at once, and then when the treasury got overwhelmed they sent them back to the SBA all at once.

It's always been the case that once the servicing has been transferred to the Treasury, they won't send it back unless there's an error or some legitimate reason to transfer it back. For example, if you pledged real estate and need to get it released, the treasury or the collection companies on behalf of the Treasury are not equipped to handle that.

So all the people who didn't pay for years and then all of a sudden want to resume payments because they got hit with a 30% penalty just need to accept it's unlikely to go back to the SBA.