Start with the SBA's own hardship options
The SBA offers payment assistance to eligible COVID EIDL borrowers facing short-term hardship, requested through its online loan portal. Terms have changed over time, so read the current page before applying.
The SBA's Manage your EIDL page (checked October 2026) describes a temporary reduced-payment program for eligible borrowers lasting six months. The page states that interest is not waived during the reduced-payment period, so the balance keeps growing. Program details, including the size of the reduction and eligibility cutoffs, have been revised before, so confirm the current terms on that page or with the SBA before you count on them.
Practical steps:
- Log in to the SBA's loan portal and check your exact balance, due dates and status.
- Look for the hardship or payment assistance option and read its eligibility rules.
- Apply as soon as you see trouble. Eligibility can depend on how far past due you are.
- Save confirmations and screenshots of everything you submit.
What happens if you keep missing payments
A seriously delinquent EIDL can be referred to the Treasury, which can offset federal payments and pursue collection; after that, the SBA usually can no longer help directly.
The SBA's page states that a delinquent account may be referred to the Treasury Offset Program after reaching 120 days of delinquency. Through offset, federal payments due to you or the business, such as some tax refunds, can be taken to pay the debt. Loans can also be transferred to Treasury's Cross-Servicing program for collection. Once a loan moves to Treasury, you generally deal with Treasury, not the SBA, and collection fees can be added.
Other consequences depend on your loan size and documents. Larger EIDLs were typically secured by a lien on business assets, and some carried personal guarantees. Read your loan authorization and note which applies to you. See our guide to a UCC-1 lien to understand the business asset lien.
Your options at each stage
Your options depend on how far behind you are: current borrowers have the most flexibility, and loans already at Treasury have the least.
| Status | What to do |
|---|---|
| Current, but trouble ahead | Apply for SBA payment assistance now, cut costs, build a 13-week forecast |
| Recently past due | Contact SBA servicing right away; check whether you still meet hardship eligibility |
| Seriously delinquent or charged off | The SBA page describes paying the overdue balance through the portal and requesting reinstatement |
| Referred to Treasury | Work with Treasury's collection process; consider legal or accounting advice |
| Business has closed | Ask the SBA about its process for closed businesses and talk to an attorney about guarantees and liens |
This is a general overview, not legal advice. Your loan documents and the SBA's current rules control.
Free up cash before you fall behind
Review every expense, collect receivables faster, and rank your debts so the EIDL is not the first payment you drop.
- Rank your obligations. Payroll taxes, rent and secured loans usually carry the most severe consequences. The EIDL is federal debt with powerful collection tools, so do not treat it as the easiest to skip.
- Cut recurring costs. Software subscriptions, unused space, insurance shopping. See how to cut business costs.
- Speed up collections. Deposits on new orders, shorter invoice terms, follow-ups on late customers.
- Talk to an accountant. They can check the tax side of any settlement or business closure.
Should you refinance an EIDL with private funding
Usually no. EIDLs carry long terms and low fixed rates, so replacing one with costlier private money rarely makes sense unless it solves a different, urgent problem.
Illustrative example. A gym owes a monthly EIDL payment of about $700 and is three weeks from missing payroll because of a slow January. Paying off the whole EIDL with expensive short-term money would raise its debt cost sharply. A smarter move is SBA payment assistance for the EIDL plus a small, short bridge for payroll that the spring membership rush repays.
That kind of targeted bridge is where ROI Funder can help. If the business has 6+ months of history, $20,000+ in monthly revenue and 500+ FICO, you can apply with a soft pull and see the true cost and payback period of a small working capital amount before deciding. Note that the existing SBA lien on business assets can affect what some funders offer.
Scams to avoid when you are behind
Be wary of anyone who charges a fee to get you EIDL relief or forgiveness. Hardship requests go through the SBA's own portal.
- The SBA does not require a paid third party to apply for its hardship programs.
- COVID EIDLs are loans, not grants, and are not forgiven simply by applying for forgiveness.
- Verify any message that claims to come from the SBA by logging in to the portal directly, not through a link in an email or text.
Frequently asked questions
Can my EIDL be forgiven?
COVID EIDLs are loans that must be repaid. Advances and Targeted EIDL Advance grants were separate and did not need repayment, but the loan itself does.
Will the SBA take my house if I cannot pay my EIDL?
It depends on your loan documents. Larger EIDLs were often secured by business assets and some had personal guarantees, so read your loan authorization and get legal advice.
Can I apply for new EIDL funds or an increase?
The SBA states the COVID EIDL program is no longer accepting new applications or increase requests.
Who do I contact about EIDL hardship?
Use the SBA's loan portal and the servicing contacts listed on the SBA's Manage your EIDL page. Once a loan goes to Treasury, Treasury handles collection.