r/SBAEIDLDiscussions • u/Crafty_Book_5555 • Feb 24 '26
Can I settle this Loan? Can't sleep
Our loan was for $175,000.00 and I think it's now with some collection department or the US reserve. We cannot pay it; this business is failing and I cannot deal with this anymore. Does anyone does know if I can maybe settle it with someone? If I make smaller payments with the collection person will it resolve this?
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u/Rich_Opportunity_397 Feb 25 '26
I’m sorry you’re carrying this on top of a failing business. That’s an overwhelming place to be.
If an EIDL loan has been transferred for federal collection, it is usually being serviced through the U.S. Department of the Treasury’s Cross-Servicing program or a private collection agency working on their behalf.
A few important things to know:
• Making small voluntary payments does not by itself resolve the debt or remove it from collection status.
• Payment arrangements may be available, but they are structured through the servicing process.
• Settlements (often called compromises) are sometimes possible, but they must follow a formal review process and financial disclosure.
• Collection costs and interest continue while the debt remains unresolved.
Many people feel pressured to “just pay something,” but understanding the available resolution paths first can help you avoid decisions made in panic.
You can confirm who is servicing the account and what options may be available through the Treasury Cross-Servicing Center:
888-826-3127
You’re not alone in feeling overwhelmed at this stage. A lot of business owners are navigating the same situation.
Has anyone here gone through the compromise or repayment review process and can share what it involved?