Current SBA Guidelines on EIDL Loan Settlements
Struggling with a COVID EIDL loan? Learn how the SBA's Offer in Compromise works in 2025, eligibility rules, and settlement options before policies change.
If you have questions about any SBA related issues, including the tax offset program, SBA loan foreclosure, or responding to an SBA demand letter, call us.
Book a Consultation CallThe attorneys in our office want to help you figure out your SBA problem. No matter how difficult your circumstances may seem, the right lawyer can assist you. We understand that you probably have questions regarding a wide range of issues, including how to respond to an SBA demand letter, what SBA loan foreclosure actually entails, and what a tax offset program is. One of our attorney specialists can tell you about all of these topics and more.
In recent SBA news, Golden Pacific Bank launched an automated nationwide program to make Small Business Administration microloans using their the Smartbizloan.com loan portal. The portal allows small businesses to apply for SBA loans as small as $5,000, which is an amount too small for most banks to consider.
The borrower fills out the online form and verifies to the lender that the bank may pull financial, tax and credit records on the company. The automated program compiles the data and grades the loan. A bank loan committee still oversees final approvals.
A loan that gets approved can be funded in days, she said. The bank is an SBA preferred lender, which means it can approve its own loans.
The loans can be as small as $5,000 and as high as $150,000 and bank officials identifying the sweet spot being under $25,000. If you are looking for a loan over $25,000 you will be required to pledge collateral. The term of the loan is 10 years, but as with all SBA loans, there is no penalty for early pre-payment.
In a pilot program since the end of last year, the SBA SmartBiz loan has funded $1 million so far through about 60 loans.
Borrowers have been across the country and in all kinds of business including loans to manufacturers of wild bird feed and yoga clothes to bookkeepers and other professionals.
The loan cannot be used to launch a business. The business seeking the loan has to have been in business with financial records for at least a year.
These mircoloans are the size of loan that many banks don’t want to make, as it takes as much time as it does to make a larger loan, and yet it offers very little income to the bank.
Many businesses that need small amounts of money end up using credit cards, but credit cards do not build up a credit profile and they are expensive.
If you have any questions about related to the Department of Treasury's tax offset program, SBA loan foreclosure, or how to respond to an SBA demand letter, please contact us at 888-756-9969 for a case evaluation.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) where borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.
Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.
This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.
After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) default in the amount of $150,000 on behalf of Illinois-based client. After the business permanently closed due to the economic impacts of the pandemic, the owners faced potential personal liability if the business collateral was not liquidated properly under the SBA Security Agreement.
We guided the client through the SBA’s Business Closure Review process, prepared a comprehensive financial submission, and negotiated directly with the SBA to release the collateral securing the loan. The borrower satisfied their collateral obligations with a payment of $2,075, resolving the SBA’s security interest.
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