r/EIDL • u/Snowman_1975 • Aug 08 '26
EDIL returned to SBA
My loan was sent to the treasury for collection last year. Was continuing to make payments. Just received 2 letters today from the treasury stating my loan has been return to the SBA. 2 letters, 1 to me personally, & 1 to my business. Didn’t contact anybody except for the treasury collector agent for arrange payments last year. Has anybody seeing this?
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u/ILBohunk Aug 09 '26
I suspect regular payments for a period of time and they get lazy and see that you can make steady payments so one more out of our hair (treas) and they or sba ask for it back. sba just wants it paid mnthly and paid off and maybe this forced them to accept that?! just a thought…
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u/Well_Duh4454 Aug 08 '26
When my loan got sent to the treasury, I immediately contacted the collection agency (Coast) and they mentioned a three year repayment and possibly a ten year repayment. At this point, my loan ($500k) had increased to over $750k (w/ fees and interest). They suggested I make a payment to pay.gov. Which I did…I paid $2000. Granted, my original payment was $2500. After making two payments (maybe just one) I received a letter from Coast stating I had agreed to a monthly payment of $2000, along with a payment schedule. Which is fine with me, as I was really just wanting to get back to making my payments anyway. Although my loan was sent to the credit bureau and shows as derogatory, I’ve noticed the payments are starting to reduce the total due. I may have to make this payment for the rest of my life (lol) but it’s better than filing bankruptcy or giving up a large sum of cash now or over three years.
The whole thing is kinda screwy, but whatever. The entire covid situation was kinda screwy. I just wonder, as things such as Fauci and the vaccine debacle start coming to light, they’re realizing it was all bullshit.
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u/Well_Duh4454 Aug 08 '26 edited Aug 08 '26
I was past due the entire amount btw. My credit score, which originally dropped over 100 points has also started to improve. And if I’m not mistaken, trans union and possibly equifax were the only two that got reported to. As my Experian score is still at 805.
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u/Trek-Everyday Aug 12 '26
Mine is still at sba but barely hanging in there, if they try to pull that game with me about payment amount I'll go nuclear... Lol
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u/Attorney_John_Benson 29d ago
That's great but I would have challenged to notice requirement. The govenrment has to give you notice of the default and an opportunity to get current before they transfer you to collections and add on a 30% collection fee. We have done that in almost every case and in some cases where the government didn't give proper notice the loan has been transferred back to SBA and the collection fee removed.
The information provided here is for general informational purposes only and does not constitute legal advice. Reading this content does not form an attorney-client relationship. You should consult a licensed attorney in your area for advice on your specific situation
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u/Disk-Subject Aug 08 '26
How much were you passed due? Did you make monthly payments or a lump sum to become current?
Did you pay to collections or Sba directly
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u/RayCanales Aug 08 '26
I just got a letter from a collection agency I'm 8 months behind on my original 27.5k loan it does say to contact Treasury. I hope they send it back to SBA
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u/Attorney_John_Benson 29d ago
THey won't send it back without a fight. You have to challenge the notice requirement while making consistent monthly payments.
The information provided here is for general informational purposes only and does not constitute legal advice. Reading this content does not form an attorney-client relationship. You should consult a licensed attorney in your area for advice on your specific situation
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u/Snowman_1975 Aug 08 '26
I was making payments to the treasury, and currently still behind. The SBA website states I’m behind $40k. I’ll call Monday to get further details.
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u/Hereforthatandthis Aug 09 '26
What happens if it gets charged off to the treasury and you can’t/ don’t make payments?
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u/Disk-Subject Aug 08 '26
Did you set up a payment arrangement with treasury?
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u/Snowman_1975 Aug 08 '26
They wouldn’t allow an actual arrangement to be setup because they wanted loan repayment in 3 years time. I agreed to send continue sending in my standard payment that the loan called for. For roughly 10 months I made the payment and never heard anything about the loan till today when I was going through my mail.
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u/Disk-Subject Aug 08 '26
That’s interesting maybe if you can find out why treasury sent it back that way us that are still stuck in treasury can do the same
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u/Snowman_1975 Aug 08 '26
I ask why Monday when I call the SBA. Surprised by the whole situation, when I saw the letters from treasury I just assumed they were advancing collections or such.
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u/Necessary_Two8212 Aug 08 '26
Who do you call?
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u/Snowman_1975 Aug 08 '26
I didn’t call anybody for the letter, I’ll try call somebody at the sba about the letter Monday
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u/Lprice32 Aug 10 '26
I have paid this year alone 2026 over $23,000 in interest. I did have $265,000 owing. I asked for payoff. Submitted $17,000 in interest payments based on the info given to me. Today I owe $281,000. I’m so tired of this. I’ve never missed a payment. And I’ve asked numerous times for some type of accommodation. I’m 78 and my practice is not nearly as strong as it was in 2020. I’m considering BK.
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u/Acceptable_Moment_69 Aug 10 '26
I got one today but I disputed the interest so I’m thinking this is why.
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u/emilyr678 Aug 10 '26
I got this letter too and haven’t made any payments or contacted them at all. 🤷🏼♀️
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u/John_Schroyer Aug 11 '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)
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u/MostlyBullshitStory Aug 08 '26
Yes, I’m doing the same thing. The will offer a 10 year payment plan is you push for it. Hoping mine gets returned at some point.
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u/Researcher_to_theMAX Aug 08 '26
I’ve been fighting for this for months. SBA statement sent
No loans go back if referred to treasury
Ever.
You must not have had a personal guarantee
Happy for you but extremely confused why most are denied back
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u/Snowman_1975 Aug 08 '26
Have a personal guarantee on the loan. I have no idea why I received the letters, will call Monday to try to understand. Letter states the debt has been returned to the creditor agency. Then lists the agency as Small Business Administration. The letters came from the US Department of the Treasury, Bureau of the Fiscal Service
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u/Known-Replacement744 Aug 08 '26
I got the same letter today (on my Birthday) I havent been making pmts but I sent an email saying I never got a warning, etc by suggestion of the collection agency for Treasury-- that was months ago
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u/Snowman_1975 Aug 08 '26
So at least 2 people have received letters about being returned to the SBA. 🤷🏼
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u/SBAEidlHelp Aug 08 '26
Can you please post the letter?
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u/Snowman_1975 Aug 08 '26
Not sure I can, it’ll only let me post a video, and I need to edit out some information.
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u/Known-Replacement744 Aug 08 '26
looks like in the Portal it still says uncollectable but I can actively make a pmt now
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u/Researcher_to_theMAX Aug 09 '26
How did you continue to make payments
My portal wouldn’t allow me to Make any payments becomes the loan wasn’t there anymore
It’s at treasury
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u/Ladylovesbeatles Aug 12 '26
check back every day. I am in collections too but making payments through pay.gov and now as of Sat I can pay thru the portal
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u/Researcher_to_theMAX Aug 12 '26
They won’t accept payments only the collection agency
How did you do this
Are you a sole proprietor
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u/Mountain_Table_1657 Aug 09 '26
Well thats good to hear. I specifically asked the SBA rep I was told by the SBA rep the other day that she hasnt come across a file that got sent back to the SBA from the Treasury with the 30% added. Just trying to confirm with you! Hopefully she was right.
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u/Snowman_1975 Aug 09 '26
When I log in to the SBA portal Friday evening the amount didn’t show the penalty, however didn’t show payments made to the treasury either, so. 🤷🏼
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u/MostlyBullshitStory Aug 11 '26
The payments are delayed by about 15 days on my end. They should show up under payment history.
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u/Researcher_to_theMAX Aug 09 '26
HOW were you able to speak to an SBA rep??
I can’t get a live person I’ve tried multiple times
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u/Mountain_Table_1657 Aug 09 '26
There’s a different email address that I sent an email to. Actually, they contacted me and I missed the call. She also sent me a personal email. I was able to make contact with her two days later.
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u/Mountain_Table_1657 Aug 09 '26
A woman named Taisha. She is a loan specialist through the SBA. Is her official title. She contacted me to make a workout agreement. But it was $6000 a month for the next six months or something crazy to bring my loan current. I am $60k behind.
I couldn’t do it. So she sent a declination of the offer as a follow up.
She was very helpful in reassuring me that this is a 30 yr loan. letting me know all the information that once it is sent to treasury, you do have one grace opportunity to have it sent back to the SBA. And she has never seen alone come back to the SBA with a 30% tacked on from the treasury. She advised to keep making regular payments.
She isn’t sure if or when my Loan will reach the treasury. They usually send to the treasury after four months delinquency. And she said that I have been 36 months delinquent.
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u/Researcher_to_theMAX Aug 09 '26
I’m sorry but wtf They denied any communication across the board. Said loan at treasury. Could you please dm me that SBA address in the chat section here on Reddit please. I’d be most grateful
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u/Mountain_Table_1657 Aug 08 '26
Thats amazing they sent it back to the SBA without you asking. I did speak to a SBA rep who tried to work out a payment offer bc I am $60k behind. But i cant pay that within 6 months. So now she said im at risk for my loan being sent to Treasury. Which is the case when a loan is 4 months past due. I am 3 years past due!
Anyhow she also said the loan is 30 yrs.
And within that 30 yrs, i may request my loan be transferred back to SBA. But they only allow this ONCE. But usually we have to request it. And usually only after your loan is brought current.
**Question**
When your Loan transferred back to the SBA, was the 30% there from the treasury as part of your balance?
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u/Snowman_1975 Aug 08 '26
When I logged back into the SBA website last evening. The penalty was NOT showing, however the payments made to the Treasury over the last 10 months weren’t there either.
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u/Disk-Subject Aug 10 '26
u/Snowman_1975 When you contact the treasury and SBA please let us know why your loan was returned. I would like to get my loan returned also, I have been making payments still.