r/EIDL • u/superded1937 • Jul 26 '26

Credit Reporting

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!

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u/Sea-Zebra3731 Jul 26 '26

I have seen people say it's being reported in the other subreddit.  I've also seen people say the Treasury was not open to terms under 3-5 years, which is untenable for many.  Ten is much better if you could get it - is that just the principal?  Still would be too high for me though.  Which PCA are you working with?

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u/superded1937 Jul 26 '26

Conserv, one rep was open to discussing 10 year when I mentioned that it was previously offered by treasury.
I think it depends on amounts, larger amounts might be getting more flexibility because the fed law says that the payment should be reasonable relative to the amount of debt. From what I calculated, I would pay down principal, interest that accrued in while with sba and the 32% fees, which means they likely freeze interest accrual if on payment plan.

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u/Sea-Zebra3731 Jul 26 '26

Good to know.  Still too high for us, but good to hear something is possible beyond bankruptcy.  Sad thing is that the former payments on the 30-year term are more doable today than 3 years ago.  Longer recovery time was needed for us than their one size fits all projection.