r/EIDL

If I’m 30 days late on my EIDL Loan can I still pay it off on the site or will it be sent to collections? Thank you to anyone who can answer this.

My husband has an $80,000 SBA unsecured loan for his small business that he is trying to exit from (retire). If he passes away, will I as his wife be responsible to pay that $80,000 back to the SBA?

I’m looking to get perspectives from independent restaurant owners who took out EIDL loans and have struggled to pay them back. If you took out loans down and closed your restaurant or are continuing to pay the debt but struggling to keep the doors open, I’d love to get your insights, too. Please reply in this thread. Ty!

I’ve done all the photos submitted so much times and as well as a PDF form EVERYTHING rejected ,how the heck am I supposed to get verified this is frustrating.SEVERAL TIMES still rejected for verification the photo is seen CLEARL AS DAY still rejected. How am I supposed to fix this????🫩🙄🙃 just trying to have the account verified when log in.They took the drivers license picture but not the ssn ???

I've had medical issues for about a year and I'm struggling to keep up with my payments. I spoke to the Distressed loan advisor guy and he says with no personal guarantee there's really nothing they can do to me personally. I'm curious to hear what anyone in this situation has experienced.

Before all the hate comments, yes I understand I’m an idiot, and plan to deal with whatever happens as it’s my own doing.

I have a 350k pg loan, I was making payments, but fell behind because I just couldn’t afford it anymore. I tried to reach out to the sba before I stopped making payments last year, and they were no help. I received the letter from the SBA on July 28th, and it has hit my credit.

My business is an llc based in PA and is still operational. I don’t want to shut down, or file bankruptcy and want to make an effort to somehow make this right. I just don’t know where to begin or where to seek help. If any one has any attorneys or can recommend any debt relief places that can be of assistance please leave a comment.

IRS sized my joint tax return with my wife. My wife's tax return was siezed. There is an injured spouse form you can fill out 8379 with the IRS. I filed this for my wife in late May. Just got acknowledgement and the money returned today. Roughly 11-12 week wait time but it is possible.

My Eidl loan has been in collections for a while. 1m+ roughly owed after penalties and interest.

Strategically I chose not to file for bankruptcy because of pending lawsuits that may satisfy the debt.

Hope this helps someone. It was nice to see it worked.

Question is in the title. I fully intend on paying back the loan in full but since it is a low interest loan I might want to take my time finishing paying it off. I don't plan on borrowing money from the SBA ever again. Does the SBA care as long as it is being paid off as agreed?

I’m writing this for those who had their loans sent to the Treasury

After months I finally got the money to pay my loan off, called the number on the collection letter to find out my debt ID number was not found

Logged into the SBA portal and my loan was back and the payment button finally allowed me to pay the loan to get it back current. I don’t know how this happened, but I hope it stays there.

Just a quick PSA to login to your portals!

Is there litte buzz that the DOJ staring to lawsuits on default personal guarantee loans? I just want to know if anyone else heard anything about this? I know that fraud yes but just default any information is appreciated

Hello everyone,
My wife and I have had our business (restaurant) for almost 30 years. We have an Eidl loan we took out during Covid to keep our crew employed, doors open etc. The loan is for 200k, no PG that I can see in the paperwork. My wife has been diagnosed with Stage 3 Ovarian cancer a few months back. We’ve gone through surgery and now chemo. We have a great crew but do not see this continuing for the long term. We need a break, start over, etc. after all the dust settles. Has anyone dealt with the SBA in this type of situation? Any advice, comments, etc. are appreciated. It’s been a tough road and we’re not sure where everything is headed. Obviously with the medical bills incoming it is even more taxing. Our loan is not in default though we usually are a few weeks behind at this point with payment. Nothing past 30 days. Thanks for any help!

Saw this in a comment in one of the threads, so thought I would just create a separate thread so people would see it

John Schroyer

jschroyer@forbes.com

Edit: guys, I am not the reporter, so no need to tell your story in the comments.

I just put his email address in case you want to reach out to him. He wants to speak to someone who has an EIDL loan and is willing to discuss and have their story told publicly.

At this point, I’m just looking for advice on what everyone has done in these types of situations. This is completely uncharted territory, so we own a restaurant we still owe $37,000 left on the Loan. We had to close the business down from basically bleeding money going more negative basically cut our losses there. I’m trying to find lawyers to figure out the best solution. I’m just curious on what everyone else has done in this situation like I said it’s personally guaranteed so I’m just trying to protect my house my car as much personal assets as I can. Any help on this would be great I feel like finding the right lawyer could make a big difference in how this turns out.

Background
I’m trying to understand how the SBA handles a situation involving an older commercial loan with multiple complicating factors.
Both of the original borrowers on an SBA loan died more than five years ago. The family now appears to control or possess the property, but it is unclear whether the SBA was ever formally notified of the borrowers’ deaths.
In addition, the loan involved property with multiple buildings, and one of the buildings was later destroyed in a major fire.

Key Facts
Both original SBA loan borrowers have been deceased for over five years.
The SBA may not have been notified of their deaths.
The family currently controls or possesses the property tied to the loan.
The loan collateral included multiple buildings, one of which was completely destroyed by fire.
SBA loan statements are still being issued in the deceased borrowers’ names.
These statements are being mailed to the home of an ex-wife of a family member.
The deceased borrowers never lived at that address.
The ex-wife:

Was not a borrower, guarantor, or party to the loan
Has no ownership or financial interest in the property
Has no authority to manage or modify the loan
She has contacted the SBA, but the statements continue to be sent to her address.

Questions
Loan servicing and notification issues
Why would SBA statements continue to be issued in the names of deceased borrowers more than five years after their deaths?
Is the estate, executor, trustee, or family required to notify the SBA when borrowers die?
What is the proper process for notifying the SBA when someone who is not a borrower or authorized party is receiving loan statements at their home?

Mailing address and liability concerns
Could a person who is not involved in the loan become liable in any way simply because loan statements are being sent to their home address?
How can someone formally notify the SBA that:

The borrowers are deceased
They have no connection to the loan
They do not authorize their address to be used for correspondence

Property damage and collateral issues
What is the SBA’s process when collateral securing a loan is destroyed by fire?
Is the SBA required to be notified of such a casualty loss?
If insurance proceeds exist, how are they typically handled when the SBA has a lien or security interest in the property?

Compliance and potential reporting issues
If loan payments continued while the deaths and property destruction were not disclosed, could that raise SBA servicing, misrepresentation, or fraud concerns?
Who should a third party contact if they believe the SBA may not be aware of:

Borrower deaths
Collateral destruction
Current property or loan status issues

Additional Context
Identifying details such as names, addresses, and loan numbers have been intentionally omitted.
I am particularly interested in insights from individuals familiar with SBA loan servicing, estate administration, commercial lending, or SBA collateral and compliance procedures.
Thank you for any advice !

So looking over the past several months of my payments as the statements say they are applied to interest and principal, it makes little sense.

May, less principal than April
June, more principal than May
July, less principal than June

I have two loans and they both have the same pattern. No explanation given. I would think that each month the principal payment should grow as it did for the past few years. Any ideas?

Yesterday, I finally received my discharge from my Chapter 7 non-consumer bankruptcy.
I wanted to share my experience because I know there are many small business owners with EIDL loans who are scared and wondering what will happen.
My SBA EIDL loan was $207,000, and my business had no assets of significant value. In addition to the SBA loan, I had other business loans, business and personal credit cards, and other business debt.
It took me almost a year from the time I started dealing with everything and preparing for bankruptcy until I finally reached this day.
I was able to keep my house and both of my cars. Nobody from the SBA or any of my other creditors showed up at my 341 meeting. My trustee asked some basic questions, and the entire bankruptcy process ended up being much smoother and simpler than I had imagined.
Yesterday, I finally got my discharge. 🙏🏻
I’m sharing this because I know how stressful having a large EIDL loan and struggling business debt can be. I spent so much time worrying about what could happen. If you are going through something similar, talk to a good bankruptcy attorney, be completely honest about your finances and assets, and understand that every case is different.
For me, Chapter 7 non-consumer bankruptcy gave me the opportunity to finally close this chapter and start over. ❤️