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Don’t Surrender to the Bureaucracy

FIGHT US Treasury Collection on your COVID-19 EIDL. 

Since late 2023, the United States Small Business Administration (SBA) transferred tens of thousands of COVID-19 EIDLs to the United States Treasury for collection action.

Small Business Owners across the country are facing the possible destruction of their businesses, their livelihoods, and (in many cases) ruination of their personal financial lives.

In the past 4 months, we’ve been inundated with requests for assistance with this egregious situation. At first, we were reluctant to assist because we didn’t know how we could assist and, worse, we could not know the result of any assistance we could provide. 

A collection action against a defaulted loan is, after all, a collection action designed to recoup funds lost to non-payment of these federal debt obligations.

We heard so many horror stories about SBA’s failures to either communicate clearly on repayment assistance or to completely fail with the otherwise simple repayment protocols required for loans.

Business owners faced collection actions through no fault of their own. We’ve heard from folks who set their loans on auto-pay (as they do with other regularly scheduled bills), only to learn their loans were sent for collection with NO notice and due to the auto-pay feature failing.

Small business owners faced other insurmountable challenges, from the inability to access SBA’s MySBA payment portal due to technology failures and poor SBA communications to payments made through guidance from SBA representatives to prevent collection actions, or to obtain approval from SBA for temporary reduced payments due to hardship. In these instances, the EIDLs were ultimately shipped off arbitrarily by SBA for collection.

In our response to the many requests for assistance, we created a comprehensive US Treasury Dispute consulting package. Our package includes efficiently prepared forms and letters to dispute the collection actions. We went one step further to use our general experience in lending, and our specific experience with the COVID-19 EIDL program, to develop strategies to accompany the dispute paperwork.

We haven’t seen the desired results, yet, of our Clients’ loans being returned to SBA for regular servicing. But we remain cautiously optimistic as we watch this drama work its way through the federal bureaucracy.

Today we received a comment on one of our YouTube videos stating the case to “surrender” in the face of these terrible collection actions.

If your business has been sent for collection to the US Treasury, through no fault of your own, through your repeated attempts to communicate a repayment process with SBA, then we believe you have no choice but to FIGHT.  

Never say “too late” to take action on these collection accounts.  Don’t apply your timeline to a government agency. Here are three things to consider:

First, US Treasury has been completely overwhelmed by the sheer number of defaulted COVID-19 EIDLs sent over by SBA.

Second, as we learned during the pandemic, while assisting our Clients in obtaining $70M in approved EIDLs: the bureaucracy moves at its own speed and gets to things in its own time.

Third, don’t ignore the fact that US government agencies have a hard and fast mandate to address issues presented by constituents—such as taxpayers—and respond, including to official disputes filed by Small Business Owners.

The fact this hasn’t happened yet is only based on the small business owner’s standards. We have a different opinion and approach.

Trevor’s rule of “Always Apply” when it comes to the business loan process, stands true with the US Treasury Dispute process: SUBMIT and FIGHT.

If you surrender due to urban mythological tropes then you don’t really care about your business or your livelihood. If you choose to FIGHT, then a result will surely happen, whether positive or negative.

We saw it firsthand during the pandemic. It will happen again.


If you need help, we are accepting new Clients for our US Treasury Dispute consulting package through March 31st, 2024.

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