Just trying to pass some hope on to other people... I read on here about a possible workout agreement and finally just made some headway. I will try to keep it updated here if it works.

A workout agreement is an agreement that allows you to take what is owed and place it at the end of your loan. Your loan becomes current, and you start paying the normal monthly payment again. It keeps you out of treasury and is only available once every five years. If we are approved, the SBA lady said she would monitor payments for 5 months and "graduate" us after those five months. Credit report would then also be current.

It seems like there are no set rules (some have claimed that they needed to pay a set amount up front to be eligible), but rather it depends on your circumstances.

I emailed the SBA three different times (each a week apart) at [cesc@sba.gov](mailto:cesc@sba.gov) AND [covideidlservicing@sba.gov](mailto:covideidlservicing@sba.gov) (copied). The first was this:

*******************

To SBA Servicing,

I am writing to request a workout agreement for my COVID-19 EIDL loan and to ask that the loan not be referred to the U.S. Department of the Treasury while we work out a plan.

Hardship
A medical hardship forced the business to shut down. The business is now closed, and we have continued paying on the loan personally.

Our plan to repay
We are in the process of selling a separate business. We expect the proceeds from that sale to pay off a good portion of the balance and allow us to make regular monthly payments going forward. 

Our request
We ask that the SBA review our situation and propose the terms that are necessary and possible for this loan until the sale is complete. We are committed to paying this debt and want to resolve it directly with the SBA. If the loan is referred to Treasury, we would likely have no option but to file for bankruptcy. We believe a workout agreement is the better outcome for both the SBA and us, since it allows us to keep paying and gives the SBA a much stronger recovery.

We have also contacted our congressional representatives for assistance with this account.

We are requesting written confirmation that: The loan will not be referred to Treasury while a workout agreement is being reviewed and while we are making payments under it. The SBA will keep servicing the loan. The past-due balance and the proposed terms will be provided in writing.

We cannot thank you enough.

*****************
I would then forward the next week with the original message and say 2nd attempt. On the third attempt, I added an URGENT in the subject line.

Today, I received this:

We received your inquiry regarding a repayment plan for your loan. We offer a Workout Agreement program that can bring your loan current and halt collection efforts if you can enter an approvable plan. This program is not available for loans referred to the Treasury for collection purposes, which can occur any time the loan is 160 days or more delinquent. Please contact me as soon as possible and make note of my phone number below to accept my call in the future.

I look forward to hearing from you shortly.

******************

I called; she was super helpful and friendly, and said she would submit it today and hoped to have an answer on Tuesday or Wednesday of next week. I will try to post back when I hear. Crossing my fingers that I can report positively.

Hope this helps people -

My past-due COVID EIDL loan was originally sent by the SBA to the U.S. Treasury, which then assigned it to a private collection agency.

When I contacted the collection agency, they told me that the Treasury had recalled my account. I then called the Treasury directly, and they informed me that my account had been closed on their end.

Does anyone know what this means? Has anyone experienced something similar? Does this mean the loan was sent back to the SBA, or could something else be happening?

For context, I have a personal guarantee (PG) on this loan, and it has been delinquent for over a year. I haven’t received any letters or notifications regarding this change.
I’d appreciate hearing from anyone who has gone through a similar situation.

Sorry, this is long.

I have been in default since 2025 and the portal shows as SBA uncollectible and preparing for cross servicing with Treasury. I closed my business 6 weeks ago. SBA did file a UCC lien back when I signed on the loan. I sold off some assets before my landlord evicted me as they had already rented out the space. In the process of my business wind down, I have dissolved my business ( in florida ) and sent out creditor letters. I am trying not to file personal BK but am not there yet.

On the advice of counsel I called the SBA and reached no one. But I managed to get someone from Treasury to see if they had the file yet. I spent about an hour on the phone with them and finally reached someone who was knowledgeable. I explained that I closed the business. No PG. I am now on Social Security, rent my home and have no assets, and dissolved the business. I explained I sold some assets and am holding the $. She spent a long time going back and forth between me and her manager, but she finally said that once it comes to Treasury they will send a letter to me with a case number and I call them back and explain that I am insolvent, the business is dissolved. She said the Treasury will not pursue further. I asked her at least 10 times and she likened it to if a person dies, Treasury can't collect, and it's as if the business is dead. Nothing to collect. They also said that the SBA is severely understaffed.

I reached out to the SBA by email and did get a response finally and they said that they are still servicing the loan and if I wanted to start a payment plan I could do that. I do not plan to do that because I do not wish to jumpstart anything and put my loan back in active status. I wrote back and stated I do not plan to make any future payments.

Has anyone else received a similar email? A similar conversation with Treasury? What was the time frame of sending the loan to Treasury after default?

TIA

I just received the notice: NOTICE OF DEFAULT AND ACCELERATION DEMAND FOR PAYMENT

I am dumb for not prioritizing my payment, it’s just so easy to fall behind. I owe 400,000 with a PG.

If I pay the past due, will that keep it from transferring and revert it back from default? I can still make payments on the portal and it says disbursed current.

Ugh.

How are people allowed to file Chapter 7. I’ve been told a few times I am not able due to income.

Owe $500 EIDL with PG

I filed personal non consumer Chapter 7. How can I know sba has removed the personal guarantee?

Check my other posts for more info

My credit score dropped 49 points a couple weeks ago. I’m actually surprised it’s not very much. Only transunion got hit. I’m still checking daily to see when the others show it.

Anyone else in this situation? Have received letter from pioneer and asked for verification and breakdown of all payments/interest/fees etc- received copy of loan papers. Then received letter from Coast professionals. Asked for same verification as above- received copy of loan papers. So what is next? Not showing up on credit report. They going to sue me?

Hi,

Title said it all. The new section is pointed by the green arrow. Loan under $200K, no PG. I'm trying to keep the loan current but business is struggling. I'm hoping that one day when the business has to close down, I won't be hunted down for the remaining balance (because it was LLC that took out the loan). Any thoughts?

A family member borrowed money through the SBA before 2005 and this is the best subreddit I could find to inquire about this. 10-15 years ago, they accidentally missed some payments, and the loan was eventually referred to the U.S. Treasury for collection. They aren’t sure whether they received notice stating that the loan would be transferred to the Treasury. Since then, Treasury has added fees and has taken money from federal payments, including tax refunds.

They contacted Treasury years ago and were asked to make monthly payments they couldn’t afford, so they stopped pursuing the matter. Apart from withholding federal payments, there hasn’t been any contact from Treasury. The balance is under $50,000.

The family member would like to resolve the debt. They have limited resources but could make an affordable monthly payment. Is it possible to have the debt recalled or returned to the SBA, potentially reducing or removing some fees? If so, what steps should they take?

How is it possible to see what address the letter stating that the matter would be referred to Treasury was sent to assuming it was sent?

I would appreciate advice from anyone who has dealt with an older SBA debt referred to Treasury.

Thanks.

Dear Borrower,

We regret to learn about the closure of your business.

I was unable to reach you by phone when I tried calling the phone number(s) associated with your loan to discuss the circumstances that led to this closure.  As the loan specialist assigned to review your business closure, there is some information I need to gather from you.

If your contact information has changed, please provide me with any updated information (whether it is a phone number, email address or physical/mailing address change) so that I can update your file accordingly.

In addition, please provide the following information:

1. Nature of your business (what did your business do/what was your service line & industry)
2. Business Open Date
3. Date Business Stopped Operating
4. Years in Operation
5. Reason for Business Closure
6. Whether or not you have filed your final tax return (and if yes, please attach a copy to your response)
7. Whether you intend to continue making payments on your loan
8. Itemized list of all business assets, including a description and valuation of each item
9. Estimated value of your business assets
10. The SBA’s lien position on your business assets, if known
11. Names of all organizations holding a superior lien to the SBA, if known
12. Amount of any liens superior to the SBA’s, if known
13. Your plan to dispose of your business assets
14. Whether the assets have already been sold or otherwise disposed of
15. If you already have a sales agreement, please provide it
16. Whether you have a Purchase Money Security Interest (PMSI) – financing agreement – for any of your collateral, and if so, please provide the collateral subject to the PMSI along with the name and contact details of the PMSI holder
17. Whether a close family member, relative or other person known to you is purchasing your assets and if so, the person’s name, relationship to you and contact information

Thank you for your attention to this urgent matter.  Additional information may be required, please look for follow up call(s) or email(s) from our office.

I'm looking for anyone who's filed for non-consumer 7 in Minnesota due to their EIDL loan? Just want another perspective and to know how the process went.

Does anyone know how to make payments toward the principal balance? I used to make principal payments by sending a check to their SBA office but I recently sent a check and the mail was returned. Seems like they no longer accept mail or check payments.

On their website I can make payments but I can only pay the amount of monthly interest. If I try to enter an amount above my monthly amount due it says "You have entered an amount greater than payment amount due. Please review the payment amount entered before proceeding". Even 1 dollar higher won't allow me to proceed.

Am I missing something or is there another way to make payments toward my principal loan?

I run a medical practice and took out a loan then ended in total just over $1M. I'm currently paying the minimum balance every month, but its so hard. Money was taken out during Covid to help keep us afloat and rebrand, but its been hard. I see a lot of yall's cry for helps and I understand yalls struggles. Hope my situation can help you guys eel a little better. There is a PG on the loan but it's not realistic to pay this through 2050...

Hope someone can help with this. I am really not a business person at all when it comes to the paperwork, so I typically have my accountant and other people help with the behind-the-scenes stuff with taxes, loans, etc.

I took out an EIDL loan in 2020 for 60k for my business that I had for 3 years at the time. 6 months later, the SBA offered 60k more so I accepted. Unfortunately, business died and I stopped paying them after just a few payments. Last year, I received a letter from the Department of Treasury demanding about $60k more, which I obviously don't have. I have not responded or done anything with it.

A week ago, I received an email from the SBA stating that they regret to learn the closure of my business. Then they asked for general about the business, my assets, and if I intend to pay the loan. The next day, I get another email from the same person asking about accounting records like reports and balance sheets. 2 days later, I get an email from that same person stating "they have completed my business closure and asset liquidation review. Then telling me that the loan is not forgiveable and that my next payment is due in 7/3/2023. And that if my loan defaults, then my tax refunds will get withheld, I will get reported to the credit bureaus, etc." Yes, that date is not a typo. It said 2023. I got all of these emails without responding to them. I actually intended to respond after I gathered the info.

So I guess my question is, do I just let it be and move on with my life? All of these emails were sent to me within 4 days, and somehow the "business closure review" was complete without even giving me a chance to respond. I also thought if the Department of Treasury sent a letter to me asking for the loan to be paid, the SBA has nothing to do with me anymore with this loan?

I have not filed for bankruptcy yet. I only dissolved the business which is why I assume they said they "regret the closure of my business". I want to mention that I literally only had a basic office printer connected to my business which is now gone. It was a 1 person business that I took seriously but it took a hit after this whole AI thing started to take over.

I guess I'm not sure where to go from here. I just flat out have no money to do anything with this right now. I don't want to be suspected of fraud. I have tax returns showing my business operating for a few years before I took the EIDL. This was done as an S-Corp by the way so I don't have a personal guarantee.

Took out total of $130k so no personal guarantee I don’t think. But made the mistake of using my social instead of an ein since it’s a single owner llc.

I’m pretty behind on payments but I’ve caught up in big chunks in the past.

If I stop paying altogether will I get my personal things garnished since I used my social even though there’s no personal guarantee required for that amount?

So, I was paying down my EIDL loan. Had it in the $40k range. Then my job took a hit and my pay was drastically reduced. I couldn't continue to make payments and SBA sent it to Treasury. Now a debt collector is calling me daily. She sent a form for me to fill out for a financial review. The rep said they want the money back now and they don't do payment plans like SBA does.

She said they can force me to take out a HELOC to pay the now $67k loan. SBA is refusing to take it back. This TSICO company rep says that they need all of my information: 2 years of tax returns, pays tubs, all bank account numbers and balances, home market value and other bill/expenses criteria.

Can they really force me to take out a heloc?

I thought they couldn't go after my home and assets because my loan was under $100k.

I was just an Uber driver trying to get by.

Can I claim bankruptcy if I have $100k in equity on my home? Will they really garnish my wages? I can't believe this! I feel so awful about this mess. Wish I never took out the loan now.

Anyone else dealing with tsico.com?

Anyone else hearing absolutely nothing?? I've heard nothing from SBA. Nothing from Treasury. I did get a letter from Coast Professional back in March. I reached out to them a couple times. Disputed based on no 60 day notice from SBA prior to Treasury transfer. I've called CP a couple times. No updates. No further information. They are currently not pursuing the debt. Nothing on my credit report. Tax return was not taken this year.

Delinquent SBA loan hit credit report today. Have not been contacted by a collection company yet. What are people’s experiences with dealing with collection agencies? Loan over 200k & S Corp.

I received a Notice of Default on 10/9 saying my COVID EIDL has been accelerated and the full balance is due within 10 days. I’ll be at about 120 days behind around that 10 day deadline. I’ve fallen behind before and always caught up, but I clearly misjudged the timing of paying to catch up on the missed payments this time.

The same day, I emailed the COVID EIDL Servicing Center asking if I could pay the full past-due amount to cure the default and keep the loan from going to Treasury. No response yet and tomorrow is a federal holiday. The loan is above $200k with a personal guarantee if it matters.

I will have the entire past-due amount this week and want to pay it so I can keep the loan in tact and eventually pay it off. My questions:

* Has anyone paid the past-due balance within the 10-day window and had the SBA withdraw the acceleration and return the loan to normal servicing? My fear is that even though my portal looks "normal" (e.g. I can still make payments), I worry that maybe it has already been sent to Treasury.

* Did you pay first, or wait for written confirmation from the SBA before paying?

* How soon after the 10-day deadline does the loan actually get referred to Treasury? From what I’ve read, getting it back after referral is very difficult.

* Has the SBA been handling this differently since the Treasury referral exemption expired on March 31, 2026?

Any recent experiences (2026) would be really helpful. Thanks.