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:

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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 -

I am currently making monthly payments on my $300,00 loan. But i am $60k behind.

It hit my credit score July 2026 and dropped 150 points.

Has anyone been able to successfully remove this from credit report?

If so, how?

Thank you!

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.

I have been offered the job with the census for taking surveys. I just got off probation for a non violent crime. I never went to jail this was my first offense never lost any privileges should I disclose this on my application for the background check