Paying your EIDL Loan in 2024
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- Avoid Treasury Collection Terms – Once sent to Treasury collections, loans face 10-year repayment at 3.75% interest plus 28% in fees. Seeking SBA reinstatement or hardship plans is a better option.
- Enroll in SBA’s Hardship Accommodation Plan – Struggling borrowers can temporarily reduce payments by 90% for six months, with renewals possible.
- Submit a Hardship Claim for Extended Relief – Eligible businesses can reduce payments to as low as $25 for up to 24 months by submitting the SBA’s EIDL Hardship Accommodation Form.
Avoiding Harsh Treasury Repayment Terms
With the EIDL "goodwill period" having ended in early 2023, the SBA began sending delinquent EIDL loans over $100,000 to the U.S. Treasury for debt collection. The Treasury is offering these repayment plans:
- 10-year terms at 3.75% interest
- Plus additional fees around 28%
- Requires submission of detailed financial documentation
For many businesses, seeking to have the loan returned to the SBA for more affordable reinstated repayment or hardship plans is preferable to the Treasury's harsh terms.
Making a Hardship Claim to Temporarily Reduce Payments
The SBA's Hardship Accommodation Plan allows you to temporarily reduce your EIDL payments by 90% if facing difficulties:
- For loans under $200,000, you can enroll directly through your SBA loan portal
- For over $200,000, contact the SBA EIDL Servicing Center to request enrollment
This reduces your minimum monthly payment to just 10% of the standard amount for a 6-month period while you get back on track. However, interest continues accruing, and you must eventually repay the full loan amount.
Whether struggling now or wanting to stay ahead of changing EIDL repayment timelines, book a consultation with our EIDL experts to review your most affordable options.
Making a Hardship Claim
If your business is still facing significant financial difficulties due to COVID-19's ongoing impacts, you may be eligible to lower your EIDL loan payments for up to two years through a hardship claim accommodation.
The SBA recently released a new EIDL Hardship Accommodation Form specifically for this purpose. Submitting this form can temporarily reduce your minimum monthly payment to as low as $25 while you get back on your feet.
This is a crucial option for avoiding default and potential debt collection actions if you're truly struggling to make your regular EIDL payments.
What You Need to Provide
The documentation required depends on the size of your EIDL loan:
- For loans over $200,000, you must submit year-to-date profit and loss statements along with the hardship form.
- For loans under $200,000, no financials are needed - just the completed hardship form.
In all cases, you'll want to craft a detailed hardship explanation letter outlining the specific circumstances impacting your business's ability to make full loan payments right now.
Key Tips
- Gather all relevant documentation before starting the form
- Clearly explain your current hardship situation and path back to normal operations
- Request the maximum 24-month deferment period if your outlook requires extended relief
- Consider including a plan for an EIDL loan modification after the accommodation period ends
[Follow our step-by-step guide to filling out the new EIDL Hardship Accommodation Form](link to hardship blog) and qualify for reduced payments.
Don't let temporary setbacks jeopardize your business's long-term recovery. The SBA's hardship accommodations provide a much-needed lifeline for EIDL borrowers still rebuilding from the pandemic's shocks.
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