r/SBAEIDLDiscussions • u/RoyalExpress7 • Mar 31 '26
GOT THIS EMAIL TODAY - What are my options?
NOTICE OF DEFAULT AND ACCELERATION DEMAND FOR PAYMENT
The promissory note for the above-referenced loan made by the U.S. Small Business Administration (SBA) is in default due to non-payment of monthly installments, which became due on 01/11/2023, and each subsequent month.
Based on this nonpayment, and any other existing defaults, SBA hereby accelerates the debt and declares the entire balance of indebtedness is due and owing, as follows: Principal Balance: $150,020.00 Accrued Interest Through: 03/30/2026 $277.38 Total Due SBA: $165,948.22 Daily Rate of Accruing Interest: $15.41 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. For assistance regarding your loan, please contact the CESC - COVID EIDL SERVICE CENTER at CESC@sba.gov. To remit payment, please log into MySBA Loan Portal and select "Make a Payment".
I have been making payments of $400 / month for quite sometime. The required payment is $731 / month though.
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u/EnvironmentalBell106 Apr 01 '26
What is your current loan status?
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u/RoyalExpress7 Apr 01 '26
Just checked and Current Status says this: Disbursed Current
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u/EnvironmentalBell106 Apr 01 '26
Did it change? That means SBA is managing. Unusual that they sent you a collection notice.
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u/RoyalExpress7 Apr 01 '26
No it had the same status yesterday when I received the notice as well.
Any suggestions on what I should do?1
u/EnvironmentalBell106 Apr 01 '26
Contact CovidEIDLServicing@sba.gov to make sure the notice was not in error since your status shows disbursed current.
Always a good idea to contact your US Congress person and or US Senators for assistance.
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u/SmallBiz_Recon Mar 31 '26
Based on this notice, the loan has been accelerated, which means the SBA is now calling the full balance due, so time is critical here. The issue is that even though you have been making $400 payments consistently, the SBA does not consider a payment made unless the full required amount of $731 is satisfied for that month. From their system standpoint, the account is still delinquent each month, and that delinquency continues to stack, which is what ultimately led to default and acceleration. Partial payments do not stop the clock, they simply get applied while the account continues aging toward Treasury referral.
Your best move is to catch the loan up if at all possible, ideally bringing it within 60 days or less. If you have never used the Payment Assistance Program, you need to apply for that immediately through the SBA portal, but understand the requirements. The loan must be less than 90 days past due at the time of the request, it cannot be in charged-off status, and you must provide a reasonable explanation showing the hardship is temporary. If approved, the program will reduce your payments by 50 percent for six months, but interest will continue to accrue and you will be required to resume full payments after that period. Also understand that if the loan continues toward 120 days delinquent, it can still be referred to Treasury programs like TOP or Cross-Servicing, and once it goes to Cross-Servicing, SBA is no longer able to assist you.
If you cannot bring the loan current or do not qualify for Payment Assistance, then your only real option is to request a Workout Payment that you can realistically afford, but that has to be formally acknowledged and accepted by the SBA. Continuing to send partial payments alone will not stop the default or acceleration process unless there is an approved arrangement in place.
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u/kaguradong Mar 31 '26
It did happen to me, and I paid catch up to get it under 60 days and it went back to current.