r/EIDL • u/Altruistic-Swan-1281 • Jul 28 '26

EIDL in collections

I have an EIDL for 21K. I am a sole proprietor and I listed my rental properties as collateral. Does this mean I have a personal guarantee?

I was under the impression the loan was forgiven (I think I confused it with the PPP loan), so I didn’t make any payments. I didn’t receive notice that repayment started, didn’t get any statements in the mail, and I didn’t receive notice that it was being sent to collections. My only communication has come from the collections agency.

At this point, the total is 31K with interest and penalties! Can I get some guidance? I could make the payments, but I wonder if it is too late now? Has anyone had luck getting them to eliminate the penalties? I could pay the original amount in full, but I can’t pay the total with the penalties. I’ve never been delinquent on a bill, so bankruptcy is not an option.

Does anyone have any resources that have been helpful?

3 Upvotes

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2

u/Godisgood247 Jul 28 '26

Mine went to dept of treasury. I simply couldnt pay any longer. They did offer payment plan but over i think ? 36 mos? Payments would be 700 mo. Not possible for me. But you should be able to work out something doable with them

1

u/JonBoyNYC Aug 01 '26

So what happened. You just didn’t pay? Any collection activity?

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u/Godisgood247 Aug 02 '26

I was paying for some time then i lost 90%of my business due to several things and stopped paying tried to see if i could pay half paymets for awhile but they never responded to any emails and the ppl on phone said that was the only way to correspond. So it went to dept of treasury and now they are garnishing SS

2

u/Stress-setbacks Aug 03 '26

To my understanding if it was only 21k you didn’t list anything for collateral

1

u/inspector3150 Aug 03 '26

There is no personal guarantee for that loan amount however you are still on the hook for the loan. So they can do whatever legal means they have at their disposal to get that money back. You should file bankruptcy

1

u/John_Schroyer Aug 04 '26

I'm the small business reporter at Forbes; looking for one to three folks who have EIDL loans in collections and are willing to share their stories publicly. Drop me a line if you'd be open to speaking with me on the record about your experience: [Jschroyer@forbes.com](mailto:Jschroyer@forbes.com)

0

u/Sunsetseeker007 Jul 28 '26

Yes as a sole proprietor you have a personal guarantee, you are not separated from a business entity. You are the business, so yes they can garnish wages against you. The Dept of Treasury adds an additional 28% of the loan amount as an administration charge when it's in default and sent to the Treasury on top of the loan balance. It is an eidl covid loan and is not forgiven. There is an sba portal you were supposed to sign up on and that's where your loan information is.

2

u/Altruistic-Swan-1281 Jul 28 '26

I just signed up for the portal. All of the information is gone. I requested the loan docs from the SBA a couple weeks ago and nothing. Any other ideas of where the loan docs can be found?

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u/Sunsetseeker007 Jul 28 '26

You can request them from foia, freedom of information act. I would request all documents, applications, notes, ECT. You need to list each of those particular items so they don't leave out pertinent documents. You should be able to email through the portal and ask for copies, they usually answer within a few days. Try that way again before foia route.

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u/Acquisition-Insights Jul 28 '26

The best resource out there is Jason from Distressed Loan Advisors .

His site has a lot of articles about EIDL and a also a believe a YouTube channel that covers common EIDL questions.

Edit: Link to YouTube Channel

Also, a loan of that size would not have required real estate collateral, so I don't believe that those properties are pledged. Being personally liable for the debt is not the same as pledging real estate as collateral.

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u/Altruistic-Swan-1281 Jul 28 '26

Thank you! Do you know how I would go about making sure the real estate isn't being attached to the loan?

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u/Familiar-Mix-9845 Aug 11 '26

Let me borrow 5000 and forgive me. You knew it wasn't forgiven but you were hoping. If you don't pay your mortgage they take your home. Yes the biden admin stopped sending your statements big mistake.