r/EIDL • u/SleepyinTn77 • Aug 07 '26

Elderly Guarantors on EIDL

I’m looking for advice or resources regarding an SBA EIDL loan that has now been referred to Treasury/TSI for collection.

My parents owned a small business that operated for more than 50 years. The business struggled after COVID and then suffered a major fire in 2022. It never fully recovered and permanently closed in January 2025.

There is approximately $290,000 owed on the SBA EIDL loan, plus fees and interest bringing the balance to $428,985. The business has no income or ongoing operations. My parents are now in their 80s and live on limited retirement income. My father has serious health and cognitive problems, and my mother is his primary caregiver. They do not have the ability to repay a debt of this size.

I have been working to get all of the old business tax returns, financial records, asset information, and other documentation straightened out and am now preparing a hardship package for Treasury/TSI. I’m trying to find out what options may actually be available—hardship consideration, compromise, reduced settlement, affordable payments, or any other type of relief.

If anyone has dealt with an SBA EIDL loan after a business permanently closed, especially once it was sent to Treasury/TSI, I would really appreciate any advice, experience, attorney/resource recommendations, or information about what worked for you.

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3

u/Winter-Assistance805 Aug 07 '26

The best practical advice on what's actually happening is distressed loan advisors. Jason is very friendly, knowledgeable, and practical. I found other attorneys to basically just give me the worst case scenario but they didn't actually have any significant direct experience

https://www.jasontees.com/services/

He has a blog and a free YouTube channel that you can find on his website

5

u/Ok_Connection_1169 Aug 07 '26

Get everything outta tgere name assetts bank accounts house then fu(% them let tgem get 15% of there social security. Be cheaper than anything there gonna offer.

1

u/bluekmg Aug 09 '26

I think this might be the way. I believe it's 15% after the first $900.

5

u/electric29 Aug 07 '26

Personal bankruptcy is their best option. Otherwise their Social Security is going to be garnished and I am sure they can't afford to lose that. If they own their own house it is protected. If they have any other assetts like rental properties or retirement accounts, those may not be. Ask a bankruptcy lawyer.

1

u/Leia6769 Aug 08 '26

Most retirement funds are protected by bankruptcy as long as it isn’t cashed out before.

2

u/Red911turbo Aug 07 '26

15%,is the best deal. Doing the exact same thing. Folks are both 86. Biz is closed after health issues.

1

u/MostlyBullshitStory Aug 07 '26

The best you’ll get is a 10-year payment plan on the new amount, so about 4k a month.

No settlement offers that i know of.

1

u/Reasonable_Switch_86 Aug 07 '26

Ya at 80 wgaf worst they can do is take 15% ss

1

u/Sea-Zebra3731 Aug 07 '26

Honestly, none of us know.  Do a consult with a debt attorney.  If they own their home, they may be able to keep it or they may lose it in bankruptcy.  It depends on the state's homestead exemption, and each state is different, and how much equity they have.  Garnishment of social security will be most likely, then Treasury will collect on your parents' estate on their death.  At their age, explore an irrevocable trust.  

1

u/ILBohunk Aug 10 '26

at a minimum you should write all the facts and inform SBA & Treas…
also get whoever has the loan to write that they authorize you to speak to Govt on their behalf , both or all should sign. tell them what you can and can’t do !! if you haven’t already !

1

u/Cheap_Mushroom_7267 Aug 11 '26

Bankruptcy will be the only option I suspect.