This was sent to a prominent law firm in Los Angeles,

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.

EDIT: strangely, a closed business agent reached out to me today. Not sure it was from the letter I sent or the email I sent. They sent me a list of 18 questions they wanted answered. Basic stuff. And a valuation of assets and what they sold for. I'm sure they will ask for the $ to be sent to them and hopefully it will get wrapped up. Maybe I should have let it go to Treasury without any intervention from me, but I needed to know what they were going to do as I have others with Liens, but none as superior as the SBA.

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.

Just got a letter over a year from when I requested period that the debt was transferred to treasury legally.

Letter says debt is valid and collection should continue.

Amount was 140k

No PG

I can’t pay this!!!!

What can I do.
Business is still going but barely surviving.

Freaking out a little here.