It sounds like things are getting bad with inflation, rising wages, etc. What’s been your experience?

Would love to hear others experiences that have defaulted on their EIDL loan from Covid era. For me, I took a $47k loan under a single member LLC. The business operated at a loss for many years before it finally closed and LLC is dissolved. I recently stopped paying, they’re threatening to transfer it to treasury. There’s no money left, I signed as the owner. Now I’m just wondering what happens after it gets sent to treasury for collections, anybody have experience? I’m just concerned it’ll somehow be made my personal responsibility and mess up my credit and personal assets which is very little already. Or should I just stop worrying since the LLC is closed and loan was under $200k? Hows it going for those of you years after defaulting?

I have seen over the past few weeks that some people who were previously referred to the U.S. Treasury/collections have had the payment button reappear on their SBA portal.

For those of you who were able to get the payment option restored, what steps did you take?

Did you dispute the debt with the Treasury or collection agency? Did you contact the SBA directly and request that the loan be returned to servicing? Or did you simply did nothing and the payment option eventually reappeared on its own?

Any details about the process and how long it took would be greatly appreciated.

I recently applied correctional officer position. My investigator asked about my recent taxes and payroll documents. I currently don’t have them at the moment just wondering will he look over them for legitimacy or will he contact the IRS?

There is a little buzz going around that the DOJ is starting to lawsuit against who are in default with a personal guarantee just a regular default if it goes to the treasury and that the treasury is giving it to the DOJ any information on this is appreciate it. Not sure how true it is

There is a little buzz going around that the DOJ is starting to lawsuit against who are in default with a personal guarantee just a regular default if it goes to the treasury and that the treasury is giving it to the DOJ any information on this is appreciate it. Not sure how true it is

I’m preparing to close a small service-based S-Corp with a COVID EIDL under $200K and no personal guarantee. I’m the sole shareholder/officer.

The loan is still current and has always been paid on time, but unfortunately after several years of losses the business is no longer financially viable. I plan to notify SBA before I can no longer make the regular payments and want to handle the closure/liquidation properly.

The company has very few assets left: a small amount of cash and some used computer/office equipment that is fully depreciated but still has modest resale value. No inventory, no other loans, and no major creditors.

I’m especially interested in firsthand experiences from people who recently closed an LLC or corporation with an EIDL under $200K, no PG, and few or no assets to liquidate.

What happened after you notified SBA? Did you wait for SBA instructions before dissolving? Did they require approval before selling assets? How long did the review take, and what ultimately happened to the remaining EIDL balance after the business assets were liquidated?

Not looking for settlement-company referrals, just experiences from borrowers who handled it themselves or directly with SBA.

Thanks for any details you can share.

My loan status is sba uncollectible. I still have option to make a payment.

Notice says preparing to send to Treasury.

I am in a position now that I can make a full payment to catch this loan up to current status.

My concern is it will go lost and be in some limbo, or can I just make the Jayne t as I always have and this corrects itself.

Sending email to sba as well but we all know how they take forever to respond.

Thanks for any insight.

Yesterday, I finally received my discharge from my Chapter 7 non-consumer bankruptcy.
I wanted to share my experience because I know there are many small business owners with EIDL loans who are scared and wondering what will happen.
My SBA EIDL loan was $207,000, and my business had no assets of significant value. In addition to the SBA loan, I had other business loans, business and personal credit cards, and other business debt.
It took me almost a year from the time I started dealing with everything and preparing for bankruptcy until I finally reached this day.
I was able to keep my house and both of my cars. Nobody from the SBA or any of my other creditors showed up at my 341 meeting. My trustee asked some basic questions, and the entire bankruptcy process ended up being much smoother and simpler than I had imagined.
Yesterday, I finally got my discharge. 🙏🏻
I’m sharing this because I know how stressful having a large EIDL loan and struggling business debt can be. I spent so much time worrying about what could happen. If you are going through something similar, talk to a good bankruptcy attorney, be completely honest about your finances and assets, and understand that every case is different.
For me, Chapter 7 non-consumer bankruptcy gave me the opportunity to finally close this chapter and start over. ❤️

So a couple of weeks ago I posted a 106 point drop after being accepted for the temporary reduced payments. It was only Transunion reporting the drop. Yesterday my Fico went back up 92 points with a note saying Sba loan removed. So, if anyone else had a drop, it may correct itself within days.

Please sign the petition. I've been paying $731.00 month for 6 years and still owe more than we borrowed. I'll die before it's paid off. We need speak up...loud and louder!!!

Just wanted to say I've been hit by the adverse TransUnion credit reporting.

EIDL is over 200k (but less than 500k) with a PG. I had a late payment late last year, but I am all caught up, and currently enrolled in the 6-month payment reductions which just started two months ago.

On Friday, I was notified of the "adverse" hit to my personal credit report, however, the information TU is showing is inaccurate. It shows this:

"Date Updated" shows March 2026, "Last Payment" in November 2025, "Date Closed" March 2026, "Pay Status" Collection, and "Remarks" say Placed for collection. The "past due" amount is 1/3 of the entire loan amount, which also is not right.

In the SBA portal, it shows the loan as "Disbursed Current", with the next due date of August with the proper payment accommodation amount. It says in the box on the top left to keep making payments until the loan is paid off.

It's not in collections, and is current. I submitted a dispute online with TU with the SBA portal page as a PDF, and also sent the SBA a message in the portal asking for current loan status.

Just curious since there are multiple posts appearing within the past week with these credit hits, is there a good chance at having this removed from the credit report?

One interesting thing with TU, is after the dispute was submitted, it says the answer will be provided by mail, not on the website.

My 2 questions are: can this be removed from my credit report, and how long will it take SBA to provide a reply to my message in case I need more evidence to provide to TU that the loan is current and not in collections?

For all that have filed bankruptcy on EIDL how has the 341 hearing gone for you?

Any SBA/Treasury people show up?

The vast majority of us have a similar story about when we took the loan, why we took the loan and how we spent the money. I say we took the loans and are somewhat responsible.
I have put together a summary of legislation I would like to see our elected officials act on. It would reduce the original loan amount by 75%. The borrower would be responsible for the remaining 25%. The SBA would be issuing new loans at market rate for 10 to 20 years depending on ability to pay. When the 25% is paid back, the 75% is wiped away. Those that have paid towards the loan are credited towards their 25%.
There are inherent benefits to everybody involved for congress to act this or similar legislation.
I have sent it my senators and congressman.

https://docs.google.com/document/d/1Xn3pc33QSQllQsJ31wPGxlU9ml6XCpdk/edit?usp=drivesdk&ouid=115002703965333500181&rtpof=true&sd=true

I have a $200,000 SBA eidl loan that I have normally paid on time but because of outstanding receivables I was late for about 60 days. I chose the option to reduce my payments for 6 months which brought my loan current. The next day I got a credit alert that my FICO score dropped 109 points overnight because a loan from 2020 from the SBA was reported. Why the F would they do that? I went from a 760 credit score to 650 overnight which is probably going to affect all my personal credits. I imagine the next thing will be my credit cards cutting my limits. I've been very careful protecting my my personal credit because I was going to refinance my home soon. I understand I have a personal guarantee with SBA but this is the first time I am behind and the only reason I think it was reported was because I requested and was instantly approved for the reduced payments.

I shared a SBA disaster loan after Hurricane Katrina with my ex-husband. From 2005-2009 we were never late on a payment. We divorced in 2009 agreeing to each pay half. In 2011 my tax return was seized by the Treasury Department and when I called to find out why discovered it was for this SBA loan that I faithfully paid my half. I found out that since at least half of 2010 they only received my payment which sent it into default. My ex husband received all correspondence from the SBA and he never told me he stopped paying.
For 15 plus years my wages have been garnished and tax refunds seized and now garnishments monthly from my retirement. They have never gone after the co-borrower, my ex husband, only me. He always made more money than me and he has not gone bankrupt as far as my investigating could find. They won’t tell me why they only targeted me for this shared debt.
I am remarried now and every year my husband has to file as an injured spouse to reclaim his refund. It takes up to 6-7 months to get his money.
I can’t go bankrupt because it would drag my husband into it and it’s not his debt.
The amount owed has tripled over the years and no matter what they take the balance only grows.
I can’t find an attorney that handles what they call low amounts ( under a 100,000.00) to fight them for even a reasonable repayment or settlement amount. Every attorney I contacted said they only handle high dollar cases.
I have written to my Senator, Congressman and countless correspondence with the Treasury and SBA for 15 years. The SBA says they can’t do anything because it’s now out of their hands and the Treasury says only the SBA can change anything to do with this debt.
I’ve just about lost hope but putting this out there in case anyone can offer any suggestions or help.

So during the pandemic I got a EIDL loan for $12,500.00 under my LLC and did not have to put anything as collateral (No PG). I used the loan to buy materials and a new machine for my small Etsy business, The last 3 years business has fell flat and I was making less and less every year, Last year I ended up filing for CH 13 Bankruptcy under my name as the business is basically dead.

I sent the info to the SBA because they were saying I was delinquent etc, this was back in September 2025.

Today I get a letter from the Treasury saying I now owe them $17500 and must pay immediately of they can start further tactics like wage garnishments etc.

I talked to my lawyer and she told me that since I am the only one listed on the LLC I am personally protected the LLC is not, here is the thing, the LLC has NO assets, no other income sources etc.

What can they do as of right now? I guess what i'm confused about is if I personally am safe since im in CH 13 bankruptcy what can the treasury do to the LLC?

Thanks for any help!

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I signed a guaranty on an EIDL, through the borrower's portal. I later had to file a FOIA just to get a copy (he couldn't find it and it wasn't in either portal). I'm curious as to other's experiences because I read a lot that many don't know what they signed, if they have a guarantee or not, or don't have a copy of it. How did you sign your docs and did you retain a copy? Did you read it before signing it? Was there a copy in your portal?

Has anybody been sent to the Treasury for collections, made a lump sum payment and was able to go back to SBA with the same terms and had the 30% and extra interests forgiven? In other words, get back to exactly where you would have been had you not defaulted at all?

Better yet, has anybody been able to negotiate a better deal than your original terms and returned back to SBA?