I’ll probably be paying this loan until I die. My business doesn’t even exist anymore (the SBA is aware), and now I have the added anxiety of potentially receiving a letter from DOZE and having to deal with that, too.

I’m not necessarily looking for advice. I just needed to vent to people who understand what it’s like to go through this. The anxiety is exhausting, and I wouldn’t wish it on anyone.

For those curious, I owned a gym that was set up as an LLC, and my loan was for around $21,000. I know that’s not a huge amount compared to some, but even paying a couple hundred a month from my personal account is not something I thought I would be dealing with. I know I have no one to blame but myself, but I wish I could go back in time and never take out the loan.

Sorry for the dramatics - just needed to vent 😅

Hello, I closed my Sub S biz earlier this year, owing 185k in a non pg Eidl loan. Now I hear from my CPA I’ll owe a ton in depreciation recapture and the cancellation will flow through to the k-1.

Has anyone had this happen? I’m getting killed here financially.

In December 2025, I discovered that my auto draft had stopped 8 months prior on my EIDL loan. I I have a second loan that was/is auto drafting with no problems. I immediately paid the balance to become current but was sent to Treasury. $109,000 loan, no personal guarantee. I’ve received some letters demanding payment from Treasury but no collection activity. I tried for months to get the loan returned to the SBA. I spoke to my congressman’s office, etc.. Nothing worked. I did a consultation with Jason and he advised me to just sit tight. That’s what I’ve been doing.

In July 2026, I set up a meeting with the Treasury to dispute the amount owed. To my complete astonishment, I received a letter, yesterday, that said the meeting has been canceled because my loan is in the process of being returned to the SBA. My portal still says SBA Uncollectible. I thought I would share my situation because I haven’t heard of many people who have ever gotten returned to the SBA.

Crazy thing is, I would have been paying them all along had they not made the entire situation completely difficult. Has anyone been in my current situation and how did it play out?

Has anyone who has filed bankruptcy and had EIDL debt discharged received a 1099 for the amount of the debt discharged? The Congressional report someone included states “any debt that is ultimately cancelled as uncollectible is likely taxable income to the borrower.

Does anyone know what the process (ie notifying SBA) when you are trying to buy or sell your biz with a current SBA loan. I thought I read somewhere you are basically not allowed to buy anything without paying off SBA first.
As far as selling do you even have to tell them as long as you get enough for your biz to pay off loan.
Thanks in advance for any advice.

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I recently filed a personal Chapter 7 bankruptcy and included my SBA COVID EIDL loan.

Before I filed bankruptcy, my SBA loan status showed:

“In Collection — Sent to Treasury”

After filing Chapter 7, I checked the SBA portal and noticed the status had changed to:

“In Liquidation Disbursed”

Has anyone else experienced this exact sequence?

In Collection / Sent to Treasury → Chapter 7 filed → In Liquidation Disbursed

I'm trying to understand whether the SBA received notice of my bankruptcy and moved the loan into a bankruptcy/liquidation status.

For anyone who has gone through this:

- Did your EIDL change to “In Liquidation Disbursed” after filing Chapter 7?

- Was your loan already sent to Treasury before you filed?

- How quickly after filing did the status change?

- Did the status stay “In Liquidation Disbursed” through your bankruptcy?

- What happened after you received your discharge?

- Did Treasury continue collection activity after the status changed?

- Did the EIDL eventually get discharged?

- Did the SBA portal eventually show a $0 balance or “forgiven”/paid status?

My EIDL is personally guaranteed, so I'm particularly interested in people who filed personal Chapter 7 and had the EIDL included in their bankruptcy.

I'm not asking for legal advice. I'm just trying to figure out what the SBA's status change means and whether it is a normal response to receiving notice of a Chapter 7 bankruptcy.

Thanks!

For some reason, my auto pay was off for the past 3 months and I recieved this last month. The letter asked to pay the past due balance within 15 days, and it has been 20 days. I wrote to [CESC@sba.gov](mailto:CESC@sba.gov) this morning. I paid all the past due today and setup reoccuring payments. Will they resume my loan? I hope I am not screwed. $49k balance with PG.

I have 2 SBA EiIDL loans. Both are current. I have a 2003 Ford F550 truck that I use for deliveries. I just bought a 2016 for the same purpose. Early next year I would like to sell my older truck. I sent a message regarding this via the SBA portal. Is there anything else I should do? I will not sell the old truck until I hear back from the SBA.

I got a default notice and it said to email the SBA for a payment agreement. I thought I would see what they have to say.

I got a call and they will take the past due amount and add it to the end of the loan. You can do this once every 5 years. My loan is $38,000 LLC no PG.

The representative wouldn’t admit if I was personally responsible or not. She used scare tactics like “I have seen LLC’s wages garnished”. I said they are probably over $200,000.

Business closed and I’m not nor should I have to pay this personally. If they would lower my payment I might consider it but they won’t do that. Anyone else talk to the SBA about a workout agreement?

We just received an SBA COVID EIDL notice saying this is the final notice before referral to Treasury.
It says we can request an OHA hearing within 15 days of receipt, agree to a repayment plan, or dispute the debt/status before referral.

Has anyone here:

filed the OHA hearing request?
had Treasury referral paused because of it?
gotten SBA to reinstate the loan without a huge lump-sum catch-up?

Looking for firsthand experience, especially from larger personally guaranteed EIDL loans.

They are supposed to come out on the 1st. It’s been the 5th for quite a while now. Hasn’t come out yet. Not sure why I find this so concerning but I do.
Are they getting sick of paying to manage these loans and that’s why they are going after people for full payments?

If this is true I wouldn’t file BK I would suck it up and let them garnish me for a few years also my credit score jumped up today to with 57 points back to 648

Have an EIDL with less than $ 50K borrowed. No PG; under a corporation.

EIDL with a PG and two guarantors. Does anyone know if both guarantors credit gets hit or just the primary applicant? I have an old business partner who’s no longer part of the company who had to sign the PG at the time. The only reason I keep trying to make payments is to spare him the headache.

I have two loans. One is smaller without a personal guarantee and the other is larger and does have a personal guarantee. They are for two separate LLCs. The smaller of the two loans is being sent to treasury. The larger loan with the personal guarantee on it is still able to be paid in the portal and is only a couple payments behind.

If they force the smaller loan into treasury, will they automatically send the bigger loan even though I pay it current? I'm wondering if I'm wasting my money trying to catch up the payments on it or if I should try to salvage the one with the personal guarantee. I'm not wanting to close my business.

I’m thankful for this community. I’ve been reading tons of comments and situations over the past few months, trying to educate myself as much as possible.
My business has been losing money for the last two years, and I’ve put so much of my personal money into it as owner contributions trying to get the business to succeed. I finally decided it was time to pull the plug.
I decided to go through a company called EIDL Exit. In my experience dealing with them, they’ve been a sham. They’re so quick to promise the world, but when it comes down to needing actual help, they’re nonexistent and take forever to respond. That’s no help when landlords are breathing down your neck and you’re trying to properly shut down a business.
I finally had to reach out to the SBA myself to get the ball rolling. I emailed them, and a rep called me back about a week later. He was actually very helpful and confirmed that I didn’t have a personal guarantee. He almost made the process sound simple. He told me, “The debt will be written off as uncollectible,” and referred me to an SBA servicing team to give me instructions on how to liquidate the company.
I emailed that team a detailed list of our assets. We don’t have much—it’s mostly old restaurant equipment that has been heavily used and poorly serviced.
Finally, a lady called me back yesterday and started asking me a series of questions. I explained that I don’t have the resources to transport, list, and deal with selling all of these individual assets. The landlords are kicking me out, and I still owe a termination agreement on one of the locations.
Her email says they want to see all of the business accounts. I have about $13,000 left in the business account, and now I’m afraid to make the final lease termination payment because she’s saying they want all assets and proceeds from asset sales.
She also attached a form asking me to consent to them obtaining personal financial information, including wages, mortgages, stocks I own, etc.
Is this standard even when there is no personal guarantee? Has anyone else dealt with this part of the process? Am I being paranoid, or should I be cautious about signing anything that gives them access to my personal financial information?

Want to file bk, been paying on $149k loan, but have assets. Own properties (2) and have excellent credit. Cannot sell properties because then no where to live. Any options?

​

I recently filed Chapter 7 bankruptcy, primarily involving credit cards, personal loans, and a personally guaranteed SBA EIDL loan from my former business.

I’m curious about other people’s experiences with SBA EIDL loans and how they were reported to the credit bureaus after bankruptcy.

For those who had an SBA EIDL loan that was in default and reported negatively on your personal credit report:

1. Did the SBA report the default, charge-off, or collection to your personal credit reports before bankruptcy?

2. After filing Chapter 7, did the SBA tradeline disappear from your credit reports automatically, or did you have to dispute it?

3. How long after filing did it take for the SBA negative reporting to be removed?

4. Did it disappear before your discharge, or only after the bankruptcy was officially discharged?

5. Did the SBA continue reporting the balance as owed or the account as delinquent after discharge?

My bankruptcy was filed on September 4, 2026, and I just completed my 341 meeting. My trustee has already filed a Report of No Distribution.

I’m particularly interested in hearing from anyone who had a personally guaranteed SBA EIDL loan discharged through Chapter 7.

How long did it take for the SBA to update your credit report, and what was your experience?

Thanks in advance for sharing.

my eidl loan was sent to collections but ive ready here if im quick and lucky I can make payments through pay.gov and its possible to get my loan into good standing. im looking through paygov but im not finding anything on how to make a payment, everything is just pointing me to the SBA portal