(Ver información en español proporcionada por Centro SBDC – Los Ángeles)
SBA will begin referring defaulted PPP and COVID EIDL borrowers with loans under $100,000 to the U.S. Treasury Department and the Internal Revenue Service for collection beginning March 4, 2024.
The U.S. Small Business Administration (SBA) has announced expanded accommodations for COVID EIDL and Paycheck Protection Program (PPP) borrowers to help bring them into compliance and avoid the repercussions of defaulting on a government loan.
To avoid collections, you should:
- PPP under $100,000 — file for forgiveness www.sba.gov/PPPForgiveness
- COVID EIDL under $100,000 — establish a repayment plan or make a payment so you are not in default MySBA Portal (lending.sba.gov/)
What does it mean to be in default?
A default occurs when a borrower stops making required payments on a debt.
Small business PPP/EIDL borrowers who are in default and referred to Treasury and IRS for collection may face significant consequences, including:
- Negative impact on credit scores
- Withholding of future state and federal tax refunds and any potential federal government
funding (such as social security); and - Referral of your loan to private debt collectors to pursue repayment, who may use tactics like
wage garnishment.
To avoid collections, take action by March 3, 2024
PPP: Apply for Forgiveness www.sba.gov/PPPForgiveness
- Even if you applied for forgiveness previously and were turned down, try again
- Assistance: contact SBA at 877-552-2692 (Monday-Friday 5am-5pm PST)
COVID EIDL: Make a payment, or request a Hardship Accommodation lending.sba.gov
- NOTE: EIDL is not forgiveable, but you can apply for a Hardship Accommodation Plan (HAP)
- Even if you applied for Hardship Accommodation in the past and were turned down, try again
- Assistance: contact SBA at 833-853-5638 (Monday -Saturday 5am-5pm PST)
- or email covideidlservicing@sba.gov – include loan or application number and the reason for your request in the subject line
- MySBA Loan Portal Technical Assistance: 833-572-0502
For more detailed information, view these webinars with Q&A:
Karie Armstrong, Business Advisor, Los Angeles SBDC
Feb 29, 2024
Click here for recorded webinar with Q&A
Lori Williams, Business Advisor, Los Angeles SBDC
March 1, 2024
Click here for recorded webinar with Q&A
En español
María Chacón, Asesora Comercial, Centro SBDC (Los Ángeles)
29 de febrero de 2024
Haga clic aquí para ver el seminario web grabado
