Massive Number of COVID-19 EIDLS Entering REPAYMENT PERIOD



In last week’s blog, we discussed the nightmare situations where small business owners found their COVID-19 EIDLs in default and sent to US Treasury for collection action. Terrified of losing their:

  1. Businesses
  2. Homes
  3. Retirement accounts
  4. Social Security payments
  5. Tax refunds
  6. Government Contract Payments

….small business owners found themselves caught in a bureaucratic quagmire.

sample guidebook CTA

During the pandemic, SBA made 4 Million COVID-19 EIDLs to assist small businesses survive the economic ravages of the pandemic.  

Many of those loans entered repayment after a 30-month deferment period at the end of 2022.  Many of those borrowers discovered that SBA’s repayment procedures and communications and technology made paying the loan practically impossible.

Starting in June, 2024, another huge tranche of COVID-19 EIDLs commence full monthly repayment requirements at the end of their 30-month deferment periods.  We cannot imagine that SBA will have repaired the horrible defects in their systems and communications by that time.

Thus, we estimate that another 1.2 Million or more COVID-19 EIDL Borrowers will face the same dysfunction at SBA making repayment of their loans a near impossibility. We don’t even want to guess how many of those loans will end up in default and collection due to non-payment.  We saw with the first group how many Borrowers were considered in default by SBA for non-payment even when they were actively paying and communicating with SBA.

If your loan is coming due soon, you should prepare for the worst.

We created our SBA COVID-19 EIDL Guidebook to help you navigate all the nuances and nightmares of the SBA’s bureaucratic bumbling.

EIDL blueprint CTA 2024

#EIDL #EIDLDefault #COVID19EIDL #EIDLUSTreasury #USTreasury #EIDLCollection #SmallBusinessAdministration #SBA #IRS #IRSCollections #Default #DefaultedEIDL #Defaultloan  #AuroraConsultingNewMilfordCTreviews #AuroraConsulting #EIDLExperts #EIDLinfo #EIDLConsultant #EIDLConsultants #AuroraConsultingNewMilfordCT #AuroraConsultingLLC #EIDLHelp #EIDLAssistance #SBANaturalDisasterLoan #NaturalDisaster #NaturalDisasterLoan #NaturalDisasterEIDL #MySBAhelp #MySBAassistance #MySBAportal #HardshipAccommodation #EIDLHardship #EIDLBankruptcy #Bankruptcy #SmallBusinessBankruptcy #TexasEIDL #FloridaEIDL #CaliforniaEIDL  

Repayment Of The COVID-19 EIDL

feature image for our BLOG: Repaying EIDL FAILS

Would it surprise you that SBA makes it shockingly DIFFICULT for BORROWERS to make PAYMENTS?

Since January of this year, we have been inundated by small business owners whose COVID-19 EIDLs were sent to the US Treasury in default status for collection actions by the government. The reasoning from SBA is these loans were considered unrecoverable for repayment, and therefore subject to official collection action. The loans were shipped over to the US Treasury, where a 30% penalty was added to the total loan balance.

Business owners in this position find themselves between a rock and a hard place. So many of the Borrowers who contacted us shared nightmare stories of how they tried to repay the loan only to be met with absurd incompetence on the part of SBA.

We dug deep in our attempts to help our Clients fight this egregious error.  

And we say “error” because so many of these loans should not have been sent for collection.  We’ve seen too many instances where it was SBA failures that caused the problem with the repayment of the loan. Notable issues we encountered:

1. SBA failure to properly notify the Borrower of the first payment due date and required monthly payment amount after the conclusion of a 30-month deferred payment period.  The emails that people received—IF and WHEN they received them—are so vague as to be a completely unacceptable method of notifying borrowers of their debt repayment obligations.

No account numbers. No hard and fast due date. No mention of the required monthly payment.

2. SBA sending notifications by USPS mail to the WRONG addresses. Even in the case of one of our own pandemic Clients where WE had changed the address with SBA and confirmed the change multiple times. Correspondence, including payment and delinquency notices, went to the wrong address. The business owner only became aware of the error months later when handed a pile of mail that had been collected at the wrong address for months.

3. SBA miscommunications by telephone and email when Borrowers contacted for assistance to either manage the repayment technology through the MySBA portal online, determine the actual start date of payments, or determine the amount of arrears so the Borrower could attempt to bring the payments current.

4. SBA failed to thoroughly notify ALL Borrowers of the special remediation program “Hardship Accommodation Program” which allows Borrowers who are facing financial challenges to receive SBA approval for temporarily lower payments.  An SBA Administrator, in a YouTube interview, admitted that SBA did not make a formal announcement about this program due to concerns that “the wrong people” would take advantage of it.

We encountered many other terrible errors committed by SBA in its poorly conceived repayment process for COVID-19 EIDLs, too many to list here.

If your EIDL was sent to US Treasury and you believe it was done in error, you must FIGHT with SBA to demand that SBA recall your loan to regular servicing and remove it from collection action at US Treasury.

#EIDL #EIDLDefault #COVID19EIDL #EIDLUSTreasury #USTreasury #EIDLCollection #SmallBusinessAdministration #SBA #IRS #IRSCollections #Default #DefaultedEIDL #Defaultloan  #AuroraConsultingNewMilfordCTreviews #AuroraConsulting #EIDLExperts #EIDLinfo #EIDLConsultant #EIDLConsultants #AuroraConsultingNewMilfordCT #AuroraConsultingLLC #EIDLHelp #EIDLAssistance #SBANaturalDisasterLoan #NaturalDisaster #NaturalDisasterLoan #NaturalDisasterEIDL #MySBAhelp #MySBAassistance #MySBAportal #HardshipAccommodation #EIDLHardship #EIDLBankruptcy #Bankruptcy #SmallBusinessBankruptcy #TexasEIDL #FloridaEIDL #CaliforniaEIDL  

EIDL Class Action Lawsuit against SBA | Opinion: Who’s to Blame

AI IMAGE of a group of startled folks in a town hall meeting

Four years ago, Congress passed the COVID CARES Act.  The legislation tasked the smallest of federal agencies–the US Small Business Administration–with the one of the BIGGEST MISSIONS in American history: the distribution of massive amounts of funding to the American Small Business community.

With uncertainty over the depth and length of the pandemic, including lockdowns, many Small Business Owners found salvation through the monies distributed by SBA during the pandemic, including the COVID-19 EIDL program.

SBA based its COVID-19 EIDL program on its long-existing natural disaster loan program, a lending directive in place since 1953 to provide Small Businesses with low-cost loans to repair physical damage or make up for lost revenue as a result of a natural disaster like a hurricane, tornado, drought or wildfire (among many other types of disasters).

Four-Million Small Businesses received COVID-19 EIDL funding, some in multiple and increasing increments.  Many of these same Small Businesses had never funded their businesses with debt financing before, so the lending process, including application, distribution and repayment responsibilities were all new concepts to these business owners.

We have seen since that time how many folks seem to have “short-term memory loss” when it comes to the terrible economic ravages of the pandemic. We also see the other side of the coin with folks retaining vivid memories of the impossible process of obtaining the pandemic funds from SBA due to overly-complicated procedures, poor communications, and other systemic failures of this tiny federal agency. 

Many businesses never received any funding at all, or, if they did, the funding was insufficient to provide the relief intended by Congress.

We know that many people today, those with that “short-term” memory problem, often say, “I never wanted this COVID-19 loan. The government should have given me this money for free. Now I’ve got a loan I’m having a problem paying it back and the SBA…and the SBA…and the SBA…and…and…AND.”

We respond, saying, “Yes you’re right the SBA has a lot of difficulties but the SBA was charged with a mission during the pandemic by the Congress of the United States and they delivered on the mission. SBA accomplished the goal: they put money into your hands and into the American economy to get the economy on track during a pandemic.

While we’re all blaming the SBA and complaining about the SBA and getting upset with the SBA, we’re forgetting that it’s the people in Congress who have let you down.

The Congress controls the purse strings of the US Treasury. And Congress has failed the SBA, and by extension, the American Small Business Owner, by failing to properly fund the SBA.

Congress has not reauthorized the SBA in over 20 years.  In 2023, by contrast, Congress reauthorized the Federal Aviation Administration as they do with other federal agencies from time to time. Congress gave the FAA a substantial increase in funding to hire new air traffic controllers and implement new technologies to keep us safe in the skies.

But what about you small business owners?

Congress has not reauthorized the SBA in over two decades and between natural disasters such as Hurricane Katrina,  Superstorm Sandy, wildfires in Maui and California, and many other disasters across the United States, the SBA can barely keep up.

Never mind that SBA is tasked with collecting the repayments on those 4 Million EIDLs from the pandemic.

The SBA in our opinion is underfunded, overworked, and overwhelmed.

SBA today has a huge mission to deliver on with minimal resources thanks to Congress’ failure to properly fund the agency.  

Next time, take a moment before you get upset with the SBA. Take the approach that we take when dealing with them: take a deep breath, find a few ounces of extra patience, and understand that you’re dealing with a bureaucracy and there is a procedure and a process for everything, yet the agency is working stretched to the limit.  

If you follow that advice, then,  yes it’s going to feel frustrating but you’re going to have a better comprehension that SBA’s failures can be repaired by Congress.

Contact your political representative as a Small Business Owner CONSTITUENT and tell your congresspeople to get SBA more money.

In the meantime when you deal with the SBA, try to have a little more patience and a little more charity because those folks do have good intentions and they are trying to do their best for you, in our experience.

We created our “SBA COVID-19 EIDL Guidebook” as a comprehensive resource for you and managing your COVID-19 EIDL.  

We discuss everything from “Hardship Accommodation” to best practices for repayment to closing your business or changing ownership and so much more.

You can purchase your copy of the guide by CLICKING HERE

You get FREE updates through December 2024 when you purchase now. And updates are coming to include expanded Hardship instruction and Treasury Dispute process and strategy.

#EIDL #EIDLDefault #COVID19EIDL #EIDLUSTreasury #USTreasury #EIDLCollection #SmallBusinessAdministration #SBA #IRS #IRSCollections #Default #DefaultedEIDL #Defaultloan  #AuroraConsultingNewMilfordCTreviews #AuroraConsulting #EIDLExperts #EIDLinfo #EIDLConsultant #EIDLConsultants #AuroraConsultingNewMilfordCT #AuroraConsultingLLC #EIDLHelp #EIDLAssistance #SBANaturalDisasterLoan #NaturalDisaster #NaturalDisasterLoan #NaturalDisasterEIDL #MySBAhelp #MySBAassistance #MySBAportal #HardshipAccommodation #EIDLHardship #EIDLBankruptcy #Bankruptcy #SmallBusinessBankruptcy #TexasEIDL #FloridaEIDL #CaliforniaEIDL  

Mistake Management: Future-Proof Faux Pas

AI IMAGE of a group of business owners in shadow with business suits and various idea icons overhead

In the world of small business, the ability to anticipate and prepare for potential pitfalls is more than a necessity; it’s an asset.

And yet, many business owners wait for chaos to strike to then try to pick up the pieces hoping that a resolution is around the corner or at least someone, anyone will be on the other end of their 911 call. 

I know it and you know it: being proactive isn’t sexy. 

Who has time to try to forecast a catastrophe? The “It won’t happen to me.” is an easy default when you think you’re one of 100 Gajillion people. 

Who’s gonna care about my little hiccup? 

We’ve seen countless times how folks have a litany of “reasons” for their oversight not realizing they’re excuses for responsibilities neglected.

They believe that they either had no contribution in the matter or their decision-making (or lack thereof) had nothing to do with what’s collapsing all around them.

However, what we know to be true is that understanding errors before they happen can mitigate dire circumstances.

I love this word, “mitigate.” I first experienced it when I was studying for my insurance license. 

Believe it or not, there’s a contractual obligation when you own property, such as a home or a building, and physical damage occurs. A homeowner and/or property owner must mitigate further damage. 

This is because mitigating additional damage prevents unnecessary costs beyond what’s already occurred. And, when an insurer is paying to repair the damage, the insurer will impose the responsibility onto you so that no additional costs are incurred because you couldn’t be bothered.

Proactive Mistake Management in the Workplace

Mistake management, aka being proactive, fosters a culture of continuous improvement, adaptability, and creativity. Mistakes in business are not just stumbling blocks; they’re opportunities for growth and learning. 

Anticipating errors before they occur involves setting up systems and processes that minimize the impact and turn disasters into teachable moments. This approach allows businesses to grow steadily without the setbacks that unplanned mistakes can cause.

Our YouTube channel @SmallBusinessAdvice, highlights the importance of strategic planning in various areas of business to manage business growth. Through expert interviews and real-life case studies, we showcase how businesses that plan for potential mistakes are more likely to succeed and scale efficiently.

Create a Cohesive Culture

Knowing potential mistakes ahead of time can significantly impact the culture within a business. It instills a sense of confidence and security among employees, knowing that the leadership team values foresight and diligence. 

This proactive attitude towards mistake management encourages a more open, innovative, and collaborative work environment.

Businesses with a proactive approach to problem-solving tend to have higher employee engagement and morale. This positive work environment leads to increased productivity and fosters a culture where employees feel safe to express new ideas and solutions.

Anticipating Mistakes Requires Creative Thinking

Science is fun especially when it promotes increased brain function. When we combine problem-solving, prevention, and creativity, this drives innovation for a small business. 

By understanding the potential errors that could occur, businesses can develop unique products, services, or processes that differentiate them from the competition.

Playing it Safe: The Art of Risk Management

Effective risk management is crucial for the survival and success of any business. By anticipating possible mistakes, businesses can create strategic plans that include risk assessment and management strategies. 

This preparedness allows them to handle unexpected situations more efficiently, reducing costs and the time it takes to recover.

Businesses that integrate risk management into their business strategy are better equipped to handle the ups and downs of business cycles. They’re more resilient and can navigate through challenges without derailing their long-term goals.

Resilience: The Art of Rebounding 

When a business develops its culture and brand around being proactive and managing mistakes, it earns the trust and loyalty of its customers. 

This reputation for reliability and thoroughness becomes a part of the brand’s identity, distinguishing it in a crowded market.

The Ability to Anticipate

Being proactive and knowing mistakes before they happen offers numerous advantages to small businesses. It not only helps in avoiding costly errors but also plays a crucial role in driving growth, fostering a positive organizational culture, enhancing creativity, managing risks, and building a resilient brand. 

In the world of small business, those prepared to face potential challenges head-on are the ones who write the success stories.

Find out more about the Biz Glitch 366 project and be ahead of your next mistake.

COVID-19 EIDL Hardship Accommodation Update: Change of Ownership

FEATURE IMAGE for blog: applying for hardship is a hardship

Many struggling businesses are requesting a reduced payment through SBA’s hardship accommodation program.  SBA will allow you to reduce your monthly payment to as little as 10% of the required payment for a period of 6 months.

A request to extend the 6 month period can be presented to SBA for up to 3 extensions for a total of 2 years of lowered payments.

SBA updated its Hardship Accommodation Program (HAP) guidelines on February 15th, 2024. As per those guidelines, your loan does not have to “current” on payments to be approved for the HAP. 


If your loan was assigned to US Treasury, but is not delinquent more than 180 days, SBA can recall the loan from US Treasury for regular servicing when the Borrower contacts SBA to reactivate a repayment action, via the HAP request process.

For loans less than $200,000, a first request for HAP can be accessed directly on the MySBA portal.

For loans of $200,00 or greater, send an email to SBA will respond with the HAP application form.

BUT…if your business had a change of ownership, or is considering a change of ownership, SBA will NOT approve a hardship accommodation request until a separate change of ownership process and SBA approval is completed.

You must submit the SBA “Change of Ownership” form. The new owner(s) will be required to submit SBA Form 912 and any other documents SBA requires. Note that SBA may require payment of the COVID-19 EIDL–partially or in full–to process a Change of Ownership request.



#SBA #COVID-19EIDL #EIDL #EIDLForgiveness #Forgiveness #LoanForgiveness #SBAEIDL #SBAForgiveness #SmallBusiness #SmallBusinessLoan #SmallBusinessLoans #PandemicRelief #PandemicLoans  #HardshipAccommodation #EIDLHardshipAccommodation #EIDLReducedPayment