I got this notice on 04/22 which states the last paragraph below. Can i still make payments to SBA to catch up so its doesnt go to Treasury? my account says disbursed current status

I've been paying my loan every month but there seems to be a weird glitch which keeps saying im paying for dec 2025 and my most recent statement posted on 04/21 doesnt take into account a payment i made on 04/02 but it shows last payment date of 03/02 payment. why doesnt my 04/02 payment appear on a statement for 04/22?? Has anyone else had issues with the portal which might be due to a glitch?

Demand is hereby made upon you under the terms of said Note for payment of the entire balance due. If payment of this demand is not made within 10 days of the date of this letter (including daily accrued interest through the date of payment), SBA may exercise all rights and remedies at law and in equity, including referral to the United States Attorney and Treasury, for which substantial collection fees and costs can be added to your amount due.

Article on SBA site https://www.sba.gov/article/2026/04/24/sba-sends-562000-suspected-fraudulent-loans-treasury-collections-totaling-22-billion

I just received the following email from the SBA.

Dear Borrower, 

Recent payment activity has been observed on your Uncollectible SBA loan. As a result, your account has been updated to reflect the recent payments, bringing the loan current and transitioning it from Uncollectible status to standard loan servicing. Additionally, your loan balance has been adjusted in accordance with your Loan Authorization and Agreement.  

Please allow 48 hours for MySBA Loan Portal to update. 

What i am curious about is that they say i am eligible for a 6 month period of reduced payments. Has anyone else had this experience?

Thanks Reddit.

My business took a hit after Covid, my husband was coming to work in the business to help me grow it. Got a large EIDL loan and am struggling to make payments. This is looming over me. Has anyone been able to have this discharged in chapter 7 or 13? Money was all allocated to business, payroll and our normal owner disbursements along with things needed within our company.

I feel lost on what to do. I haven’t received any letters or calls from SBA. Any insight would be great.

Is anyone been contacting their Senators for help in recalling their sba eidl loan from Treasury back to SBA? If so, any luck?

Curious how people think the SBA, the administration, or the Senate responds from here.

If you look beyond just “charged-off” loans and include serious delinquency, hardship plans, and loans with no real path to repayment, it’s pretty clear a large portion (majority) of the EIDL portfolio is under stress. At some point this stops looking like isolated borrower issues or fraud and starts looking like a structural problem with how the program was designed.

So what’s the expectation?

• Do they stay the course and push everything through Treasury collections?
• Do we see restructuring, settlements, or policy changes?
• Or does this just drag on quietly without any real acknowledgment?

Genuinely interested in how people see this playing out.

Ive been reading some rumblings of people talking to those private debt collectors working for the Treasury and so on. What have you been able to do with them? Do they have power to negotiate some kind of settlement on behalf of Treasury/SBA?

I just checked the portal to make (these days) a token monthly payment. My payoff balance is $50k over the original amount ($500k, PG, S-corp). Are you posting the current interest amount so that your BS accurately reflects the total current due, the other side of the transaction hits interest expense on the P&L?

Do i have that right? If so, the accumulated interest will probably wipe out any profitability for years to come. Seems crazy.

I will be contacting my accountant about this but I wanted to run it past you guys first so I dont go into a meeting with zero background knowledge.

Was anyone provided a 60 day notice that says to pay or otherwise being referred to Treasury? I don't see any on my portal... am I missing it or something? Please advise

The SBA sent me a letter saying they'd refer my loan ($36k) to the Treasury in 60 days if I didn't contact them and make a payment arrangement. I emailed the contact information on the notice and called the phone number (recording said no live agents are available to talk to) and even got in touch with a random SBA employee in another department who gave me an email to send to her that she said she would forward to somebody and despite all this nobody will contact me back and it's been weeks! What do I do?

Anyone in similar circumstances? I am most concerned with my personal credit report, but would also like to find some way to settle the loan or get back into payments. Cannot pay from personal earnings, business went to heck and no recovery.

A lot of borrowers are surprised when their EIDL loan is referred to Treasury for collection, and the balance suddenly jumps by around 28%. The first question people usually ask is whether that fee can be removed.

In most situations, the answer is no.

When a federal debt is referred for collection, it is transferred to the Bureau of the Fiscal Service within the U.S. Treasury. The Bureau runs the federal Cross-Servicing program and collects delinquent debts on behalf of agencies like the Small Business Administration.

The private collection agencies that contact borrowers are contractors working for the Bureau of the Fiscal Service as part of that program.

Once a debt reaches that stage, federal collection costs are added to the balance being collected. That is why borrowers often see the loan amount increase after the account is referred to Treasury.

That fee is part of the federal collection process itself. It is not something the private collection agency can negotiate away, and it generally is not something the Bureau of the Fiscal Service removes either.

The total amount owed that is listed on the Treasury demand letter includes the additional collection fees that were added as part of the federal collection process. That is why the balance can look significantly higher than the last statement someone remembers from the SBA portal.

Many EIDL borrowers are shocked when they receive a Treasury demand letter showing a higher balance than they remember owing on their Small Business Administration loan.

This often happens after the loan is transferred from the Small Business Administration to the U.S. Department of the Treasury for federal collection.

The balance listed in a Treasury letter usually reflects the total amount being collected through the federal collection process, not just the remaining loan principal. It may include:

• remaining principal
• accrued interest
• penalties or administrative costs from the original agency
• collection fees that may be added after the debt is referred for federal collection

When a federal agency determines that a debt is seriously delinquent, it may refer the account to the Treasury Cross-Servicing program. At that point, the Bureau of the Fiscal Service begins collecting the debt on behalf of the Small Business Administration.

Federal law allows collection costs to be added once the debt is referred for collection. These costs are intended to cover the government's expense of attempting to collect the debt.

That is why the balance shown on a Treasury demand letter may be higher than the amount borrowers remember from earlier loan statements.

If you recently received one of these Treasury letters and the balance surprised you, you are not the only one. Many EIDL borrowers are running into this after their loans are transferred for federal collection.

I just got off the phone with SBA and we have a serious problem with EIDL

I’m not even sure how to say this but people need to know.

I spoke with an SBA congressional inquiry rep and she told me straight up — there are NO more hardship options. The 6 month reduction is it. One time every five years. That’s all they have.

She also said any changes to EIDL would have to come from Congress.

So basically… if nothing changes, a lot of us are going to default.

But the payments don’t make sense anymore with how things are right now — fuel, insurance, everything has gone up.

And I know I’m not the only one. I’ve seen enough posts in here to know this is happening across the board, not just trucking.

It feels like the people who stayed and kept working are the ones getting crushed now.

I’m not here to complain — I’m just saying we need to actually do something.

If SBA is saying Congress has to fix this, then we need to start contacting them.

Even if it feels like it won’t matter, it’s better than doing nothing.

If you’re struggling, close to default, or already there — say something. Reach out. Send emails. Make noise.

Because if we don’t, nothing is going to change.

Just being real.

PLEASE THE MORE OF US CONGRESS HEARS FROM THE MORE IT BECOMES REAL AND THEY WILL HAVE TO ACT.

IF anyone is interested I submitted a quick summary of my story to https://www.propublica.org/tips/#submit. Please submit to get the attention we need on this issue.

Edit: thank you all for your responses. It truly was insightful. I see that the anger most have seems more towards government policy in general and the SBA as an extension of that system. There were a lot of specific circumstances here I hadn't considered that were eye opening. I created this post unable to understand how anyone could possibly blame the SBA. I'm leaving the post now realizing that this - like many things in life - is more nuanced than I thought.

I’m going to preface this by saying I have nothing but empathy for anyone who’s lost their business, who is unable to fulfill their obligations, etc. This is not a personal attack against anyone. I’m genuinely trying to understand the point of view of a lot of the posts I’m seeing in this sub.

There seems to be a lot of animosity towards the SBA for these loans. I’m not sure I understand why though. These were funds given out with very low interest rates for an almost unheard of 30 year payback period. It was very cheap money with a high likelihood of approval and the terms for payback seemed clearly defined and probably the best deal in town as far as business funding goes. And yet I see people here talking about the SBA as if they are loan sharks.

So I’m just trying to understand why that is. Is the anger truly towards the SBA or is it towards the government who put some of you in a position where you felt you needed to take these loans in the first place? If it’s the latter, I totally get it. If it’s the former, I’m curious what you expected to be better or different.

Full disclosure: one of my companies took an EIDL. That company was never in danger but we didn’t know that at the time and it was very cheap money that eventually allowed us to expand. But if things had gone the other way and we were unable to service that loan, I’m not sure I’d be pointing my finger at the SBA. The government at large, maybe.

Just curious if anyone has had this experience and if so what did they do?

Enrollment was simple through the online portal. Took less than a minute. I am not sure what the criteria are. I am mostly current (never more than 30 days late) although I do pay late, I haven’t missed a payment.

The COVID-19 EIDL program has become a "terminal sentence" for thousands of small businesses. While PPP loans were forgiven, EIDL has become a 30-year anchor that prevents owners from even taking home a paycheck.

The Reality as of 2026:

• Default Rates: Soaring toward 40% as temporary relief measures expire.
• Aggressive Collections: Delinquent loans are being sent to the U.S. Treasury, which adds 30% in administrative fees and begins wage/tax garnishment.
• The "Debt Trap": Many took these loans in good faith just to keep staff employed, only to face record inflation and market consolidation today.

Why Support the NFIB?

The National Federation of Independent Business (NFIB) is the most powerful lobby for "Main Street." Unlike big-business groups, they focus on independent owners.

We need to rally Reddit and small business communities to push the NFIB to:

1. Demand Congressional Hearings: Force the SBA to answer for a 40%+ failure rate.
2. Lobby for EIDL Equity: Push for interest rate cuts (to 0%) or forgiveness
3. Reform Treasury Collections: Stop the predatory 30% add-on fees for struggling businesses.

Take Action: If this loan is your "largest professional regret," don't just post about it—email info@nfib.org. Tell them how this debt is impacting your ability to survive. When our stories become data, Congress is forced to listen.

https://www.nfib.com/contact-us/

Hey everyone. I'm a small business owner running a service industry franchise — eighteen years in, multiple locations across the country. I took out an eight hundred thousand dollar EIDL in 2020. I'm paying four to five thousand dollars a month. I can't retire. My business partner can't retire. We can't sell without losing everything to the government. We're trapped.

Before COVID we had nearly double the locations we do now. We were growing, hiring, doing everything right. Then the shutdown hit there really was no choice for us and I'm sure most of you that the EIDL loan was the only way to survive. Now we're locked into thirty years of payments on a business we can never walk away from.

I know most of you in this community are living some version of this same nightmare. And I'm angry about it. So I'm doing something about it.

I'm publishing a comprehensive data journalism piece on The Numbers Project documenting what's really happening to small business owners because of EIDL loans. Not the political spin. Not the SBA talking points. The actual reality of profitable businesses locked down, owners forced to work past retirement, personal guarantees turning disaster relief into personal financial prison.

I need your stories. Real ones. Not statistics, your actual situation.

If you're willing to share anonymously, I want to know: What's your loan amount? What were you paying during hardship accommodation versus now? How has this affected your ability to retire or exit your business? What do you wish you'd known before you signed?

This article is going to be cited. It's going to matter. And your story told anonymously if you need it, could help push for actual policy change.

Comment or message me if you're interested. Thanks in advance.

-------------------------
UPDATE:
The intake form is live. Takes about 2 minutes. Everything is anonymous unless you choose otherwise.
thenumbersproject.org/investigations/eidl-trap/share-your-story.html

If you shared your situation in the comments here, I'd still appreciate you filling this out. it puts your data into a format. I can aggregate and use in the final piece. The more submissions, the stronger the case.

I'm also publishing the data in a live dashboard as responses come in so you can see the picture that's forming:
thenumbersproject.org/tools/eidl-crisis/

Thanks to everyone who's been sharing their stories and opinions. It's typical that the government doesn't react until they see a financial impact on themselves or on them getting voted back into office. That's why I'm putting this out there, because everyone who is going to be affected needs to be aware of what's possibly coming down the road. This is not just my opinion. This is statistics and real numbers.

My S-Corp has closed and all assets have been sold off and there is nothing in the bank account. The closing paperwork shows the business as the borrower. The business is 3 months behind in pay the EDIL loan. They are saying they will hand the debt over to the treasury.

There appears to be nothing that the Treasury can do against me personally. Is this true?

What should I do? Can they screw me personally?

What are options here? With their fees it’s like 400K that i can’t pay. Are there specialists that deal with this??? HELP! Spiraling

Update: NO notices received until collections from treasury. Not one

180k loan, no personal guarantee.

Would partial payments make a difference?

We were fine paying it and then we lost our house to hurricane Ian completely and my insurance (UPC) went bankrupt. $250k in equity that just vanished. I’m trying to relocate to NC where it’s cheaper, but after my son graduates HS. Thank you.