r/EIDL

I received a message from the collection agency that was very alarming. I indicated on the phone I’d try to follow their plan of 10k down and over 11k per month. I also said I’m not sure how long I can do it. After I did pay the collection agency through the treasury portal, I got a letter indicating I was now in a formal plan. If I break that plan then NONE of my PAYMENTS will apply. This is utterly unethical & seems illegal. I’m very conflicted on how tp move forward. Anyone else get this kind of letter with the same language

I was served a collection notice on April 9 2026 by Coast Professional for an amount just over $9k with the 30% tacked on by the treasury. I originally applied for $6k as a sole proprietor.

As many others in this thread have expressed, I didn’t feel I was notified properly before my loan was transferred to the treasury. I had my senator reach out on my behalf to try and get the loan returned to SBA. The response they got back was the following:

“My research found that the loan is designated SBA Uncollectible and SBA can no longer service this loan after it is sent to the U.S. Treasury Department.  Contact the U.S. Treasury Department at 1-800-289-7388 for questions regarding this loan.”

I’ve been reading about people’s experiences in this sub and seeing lots of inconsistencies around credit reporting. Of the ones I have read of being reported, the loans have been for hundreds of thousands (or sometimes millions) of dollars. I’ve also seen some reports that amount under $200k would not be reported, but there seems to be confusion around who that actually applies to.

I just got my credit to a good place and my main priority is maintaining it. As of current I have no indication of this debt on my credit report, and the debt doesn’t populate when I call the ToP hotline.

Here are some things I’m curious about:

-Does it actually matter that my original loan was only for $6k?
- If you’re in a similar situation with a much smaller loan amount, how are you handling it?
- For those that have reached out to the collections agency, have you had success in getting them to agree to a pay-and-delete to protect your credit?
- Has anyone with a lower loan amount actually seen the collection on their credit report yet?

Any insight would be very helpful!

Where is everyone with your SBA to Treasury disputes? Any changes or status updates??

I thought I was getting on track with SBA back in January. I'd reached out to them, started payments again.

When I tried to make a February payment, it was no longer an option in my SBA portal.

SBA has not reached out to me since 2024. No notices. Just a monthly statement by portal. And only canned responses to my email inquiry

In late March I received a letter from Coast Professional collection agency on behalf of the Treasury with a 30% fee added. Or about $9000 added

I disputed on grounds of no 60 day notice from SBA prior to Treasury transfer. Its my understanding its a requirement before anything goes to Treasury.

30 days later, Coast Professional sent a very vague, SBA canned response like letter stating, SBA's failure to send proper notice really isn't their problem. No real details, or options, nothing about next steps, or options. It doesn't really even address my loan in particular

So I called Coast Professional to inquire about next steps, options.

The woman basically said she can't discuss anything with me as I disputed. Said the letter explains everything. No, it really doesn't! She wouldn't answer if my file is still "in dispute" Just kept saying refer to the letter.

So I"m confused....SBA won't say anything other than contact Treasury

Treasury has not reached out at all

Coast Professional won't discuss anything "due to my dispute"

Sooooo....where does that leave me? Has anyone experienced this? Have you received answers at all pertaining to disputes??

After exhausting letters to the SBA, senators, and running FOIA documentation reviews, I am throwing in the towel and ready to hire professional counsel.

I need a recommendation for a highly experienced commercial bankruptcy attorney or boutique firm based in Los Angeles (Central District of California).

They must have direct experience handling COVID-19 EIDL loans and successfully navigating Subchapter V (Chapter 11) restructurings. My specific goal is to use a personal equity injection to fund a settlement for a $500k loan, contingent on a court-approved release to permanently extinguish my personal guarantee.

If you have successfully used an L.A. lawyer for this exact scenario or know a specialized corporate boutique firm, please drop their names below or DM me. Thank you.

Has anyone received two (2) hardship approvals thru the button in the sba portal? I get folks had previous hardship approvals and then an additional approval through the sba portal button. But I am asking has anyone been approved twice using the portal button. Thx!

My portal shows my status as uncomfortable but I was transferred to Pioneer Credit for collections. Anyone else have this?

I only found this subreddit yesterday and I am SO GRATEFUL that it exists. I’m sorry for what we are all going through! This is terrible!

Is this how it went for anyone else? I received a bill from SBA in June 2023, which I paid. It was billed as a one time payment. No request for monthly payments, etc. I thought maybe it was a settlement or something.

I did not hear from SBA again until September 2025. As soon as I heard from them I set up the portal and recurring monthly payment for the amount requested. No problem.

In December 2025 they asked for 33 back payments, which I did not have. I was already making monthly payments so I figured we were good. Nope. In February they transferred my loan to Treasury and in March canceled my payments.

Was I supposed to be paying this debt with no bill? There’s no way that can be legal. Now that it’s sent to collections, and with advice from this subreddit and Jason’s YouTube page, I won’t be paying anything. This all seems really silly and fucked up.

I never got a SBA 60 day notice and was making recurring payments. The SBA representative claims they sent a letter in the mail...but it's not found on the portal. All other letters Demand of Acceleration payment and statements are to be found but not this letter they claim that was mailed.

Have you seen this? Can they legally be garnishing and taking people’s tax refunds? Read it quickly because Reddit mod keeps removing it.
“The IRS has been operating without a legally-required Commissioner since March 6, 2026. That is, the IRS itself is in total violation of the tax laws.”

I'm trying to understand what the SBA experience actually looks like once they recognize a business is closed with no assets, no cash, and over $200,000 in debt. Do they still require a mountain of paperwork and just continue down the same path of Treasury referral, collections, and hardship enforcement anyway?

At what point does it make sense to keep spending time and resources gathering all this information and dealing with the skeleton crew still working there if the end result is collections and Treasury regardless?

Has anyone been through this? What was your experience?

Spoke to Treasury today. No OIC (offer in compromise). They would accept a lump sum payment which would bring down the overall debt to reduce 10 year monthly payment plan. Still makes payments about 2x bigger than original loan payments. This doesn't work for me and wouldn't work for anyone else.

I wrote them a letter, they received it, but I still got my Tax Returns garnished. The problem is it was a joint filing with my wife, and it was basically her tax returns. She doesn't know yet... she is gonna be pissed.

The main reason I called was to find the time frame of when w2 wage garnishment will happen. As of now they have not filed that. It sounded like they have not done it with anyone yet for the eidl covid loans. I could be mistaken here.

I advised her that the only way I can pay would be through the Offset program (tax returns/wage garnishment) or OIC, which was suggested by the lawyer.

Bankruptcy Chapter 13 is probably an avenue I could take, but just keeping that in my back pocket for now.

Many (most?) who received an EIDL loan didn't use the funds appropriately. The invested the money, or used it for personal use, etc. There is a 10 year Statue of Limitations on fraud - does "fraud" include misappropriation of funds?
Can a business owner who knows they didn't use the funds correctly wait until the 10th year to then default in order to take fraud off the table?
OR - is there NO S.O.L in such a case?

My EIDL has a personal guarantee as I was a sole proprietor. Balance went from $52K to $80K once CBE got it. I can’t file a BK until August 2028. Any stall tactics to keep from a garnishment happening?

I am coming up on 90 days past due on a $375k loan with a personal guarantee. Already did one round of payment assistance at 50%.

At what point do loans get sent to Treasury? Things are picking up in my business and I can make a payment soon, just not sure I can before the next due date. I want to try to pay this off without declaring bankruptcy.

Should I do whatever it takes to avoid going 90 days past due or is 120 days the cut off?

Any help would be greatly appreciated!!

What does the form look like that is sent to employer that garnishes 15 percent of your wages. Does the employer know the specific details such as “this person took out this loan of 300k EIDL”. In other words, most people wouldn’t want their employer to know why ? I don’t. I think they may terminate my employment

Just got done with my 341 meeting today.
No one showed up from SBA or any other.
Was asked yes or no questions only.
Trustee didn’t even ask one question about my Covid EIDL loan.

Took about 20 mins because people were ahead of me. It took 3 mins for my turn.

I had total $293 K debt with credit cards, personal loans and SBA Covid EIDL as sole proprietor loan.

After yes or no questions trustee said I am excused and I can leave the meeting. No other information needed.

Hopefully that’s it now so I can start rebuilding. Only regret is why I didn’t do this earlier.

Applied for capital one quicksilver credit card unsecured and got approved for $4000. Also got approved for mission lane for $2000 unsecured. I already had discover secured card for $400.
I think good enough to start rebuilding for now.

Let me know if you guys have any questions. I am in SoCal.

Has anyone come to an agreement with Pioneer Credit on repaying their EIDL loan? I was hoping to make a graduated payment plan.

My plan was 459000 but with interest and the pioneer fee- they added 137000 to the loan so I'm around 637000.

Business closed in 2023 with no assets. I'm in my sixties and working and will probably pay this the next of my life.

I don't want to file bankruptcy but I'm still in talks with an attorney on those options. Just wondering if anyone has come to some sort of terms on repayment.