The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Yes, some relief may be available for a COVID-19 Economic Injury Disaster Loan (EIDL), but SBA’s published options do not erase the debt. Eligible borrowers may request a temporary 50% payment reduction for six months. Interest continues to accrue, and full payments resume afterward. SBA says COVID EIDLs cannot be forgiven; an Offer in Compromise is considered only after collateral liquidation under SBA guidelines, and approval is not guaranteed. What you can do depends on your account status, whether the business is operating, and the reason you cannot pay.
Which kind of SBA loan does this guidance cover?
The payment-assistance and forgiveness rules below concern COVID-19 EIDLs. They should not be assumed to apply to every SBA loan or other EIDL program. COVID EIDL was a direct loan that must be repaid, not a grant; PPP forgiveness rules do not apply to it.
SBA’s program overview describes COVID EIDL loans as having a 30-year term and fixed rates of 3.75% for businesses and 2.75% for private nonprofits. It says payments were deferred for the first two years, with interest accruing during deferment. The program required collateral for loans over $25,000 and a personal guaranty for loans over $200,000. These are program-level terms; your signed note and account record govern your particular loan.
What relief option fits your situation?
| Your situation | Option SBA describes | Key condition or limit |
|---|---|---|
| Temporary cash-flow difficulty; account current or less than 90 days past due | Request a 50% payment reduction for six months | Eligibility rules apply; interest keeps accruing and full payments resume after the assistance period. |
| Loan charged off or deemed uncollectible, but not referred to Treasury Cross-Servicing | Pay the full overdue balance through the SBA Loan Portal, then ask COVID EIDL servicing to reinstate the loan to current status | This is a conditional route, not a guarantee of reinstatement. |
| Loan referred to Treasury Cross-Servicing | Contact Treasury using the notice or SBA’s published direction | SBA says it cannot assist with the loan after transfer. |
| Business closure or liquidation is anticipated | Message SBA through the Loan Portal or contact COVID EIDL servicing | Contact SBA before disposing of collateral or winding down the business so you can confirm the servicing requirements for your loan. |
| Considering an Offer in Compromise | Ask SBA about the process after collateral liquidation | SBA says it considers an offer only after liquidation under its guidelines; that does not mean an offer will be accepted. |
How does the six-month payment reduction work?
SBA says an eligible borrower may request a 50% reduction in payments for six months through the SBA Loan Portal. SBA says eligible loans may use this assistance once every five years. It is a temporary reduction, not a pause that stops interest or reduces the principal balance by half. Interest continues to accrue during the assistance period, and SBA warns that this increases the balloon payment due at the end of the loan term.
#1 Best Overall
Check the eligibility rules first
SBA’s published eligibility conditions require the loan to be current and less than 90 days past due when you request assistance. The business must be actively open and operating; neither the borrower nor the owners may be in active bankruptcy; and the payment difficulty must be temporary or cash-flow related rather than a long-term challenge.
Submit the request
- Sign in to the SBA Loan Portal and check the account status and available servicing options.
- If the loan meets the published conditions, submit the payment-assistance request through the portal.
- If the loan was originally approved for more than $200,000 and the portal does not offer the request, SBA directs borrowers to email COVIDEIDLServicing@sba.gov. Confirm availability and account-specific eligibility with servicing.
What if your EIDL is delinquent or with Treasury?
SBA says an account may be referred to the Treasury Bureau of the Fiscal Service Offset Program after 120 days of delinquency if required payments are not made. SBA also says loans that meet specific delinquency criteria may be transferred to Treasury Cross-Servicing. A notice about your loan is the key guide to which agency is handling it.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
If the loan has not been transferred
Use the SBA Loan Portal to check the account status and contact COVID EIDL servicing about your options. If SBA identifies the loan as charged off or uncollectible but not yet referred to Cross-Servicing, its published instructions describe paying the full overdue balance through the portal and then contacting servicing to request reinstatement to current status. Confirm the amount and procedure with SBA before paying; reinstatement is not assured.
If the loan is in Treasury Cross-Servicing
SBA says it is no longer the servicer and cannot assist once the loan has been transferred to Cross-Servicing. Contact Treasury using the phone number or other instructions in your notice. SBA’s published direction lists 800-289-7388, but check your current notice for the correct contact route.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteRank #3
Can SBA forgive or settle a COVID EIDL?
SBA says COVID EIDLs cannot be forgiven. Its Offer in Compromise Requirement Letter, last updated August 11, 2026, says: “An Offer in Compromise will be considered ONLY AFTER LIQUIDATION of all collateral pursuant to Agency guidelines.” That is a prerequisite for consideration, not a promise that SBA will accept an offer. Do not treat an OIC as a routine substitute for payments or assume you qualify without an account-specific review.
What should you do if the business is closing?
SBA directs borrowers who anticipate business closure or liquidation to message through the Loan Portal or contact COVID EIDL servicing. Contact SBA before disposing of collateral or closing out the business; collateral and servicing obligations may matter to your loan. When you contact servicing, SBA instructs borrowers to include the loan number, reason for the message, business or applicant name, and contact details.
What if bankruptcy is part of the decision?
Active bankruptcy proceedings by the borrower or owners exclude a borrower from the published payment-assistance program. That exclusion does not answer whether a particular EIDL can be discharged, or what bankruptcy could mean for a guaranty or collateral claim. Those questions depend on the loan and the applicable jurisdiction. If you are considering bankruptcy, consult a qualified attorney familiar with business debt in your jurisdiction rather than relying on general EIDL guidance.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to contact SBA and make payments
- Sign in to the SBA Loan Portal to review account status, payment history, and servicing options.
- For COVID EIDL servicing, use COVIDEIDLServicing@sba.gov or confirm the current contact route on SBA’s Servicing Center page.
- SBA’s Servicing Center page lists 833-853-5638 for payment by phone. SBA says paper checks are no longer accepted effective October 1, 2025, so follow the current electronic payment instructions.
- If your notice says the loan is in Treasury Cross-Servicing, follow the notice and contact Treasury rather than asking SBA to service the transferred account.
Published guidance cannot establish whether your specific loan is eligible for assistance, has already been transferred, has met the conditions for reinstatement, or could qualify for a compromise. Check the loan file, account status, and notices with the agency currently handling the account.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsQuick Recap
Best Value
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
