Collateral threshold
SBA’s published COVID EIDL terms state that collateral was generally required above this original loan amount.
Official source ↗COVID-19 EIDL borrower triage
Is Your EIDL Loan Actually Forgiven?
Short answer: no. There is no general COVID-EIDL forgiveness, and the balance does not disappear if your business closed. But if you are behind or getting letters, you have more options than those letters suggest. Answer 5 quick questions to see exactly where your EIDL stands, and what the SBA or Treasury can do next.
Free · ~60 secondsNo credit impactSources dated & cited
The escalation track
Different letters can mean different levels of urgency.
The assessment maps what you know to a stage. It does not predict what an agency will do in an individual case.
- 01SBA servicingCurrent, hardship, or early delinquency
- 02Demand / 60-day noticeFormal collection warning
- 03Charged offSBA accounting and referral stage
- 04Treasury collectionTOP or Cross-Servicing tools
- 05DOJ referralLitigation-stage review
Start where you are
Find the guidance that fits your situation.
Letter decoder
Start with the document in front of you.
Match the sender and notice type before making assumptions about what comes next.
Document 01
SBA past-due notice
An early SBA servicing notice that can identify a missed obligation and current account status.
Read the plain-language guide →Document 02SBA demand / 60-day notice
A formal warning that referral or additional collection steps may follow if the debt remains unresolved.
Read the plain-language guide →Document 03Treasury TOP notice
A notice involving the Treasury Offset Program and eligible federal payments.
Read the plain-language guide →Document 04Cross-Servicing letter
A Treasury-servicing notice that can involve payment arrangements, disputes, and collection tools.
Read the plain-language guide →Document 05Wage-garnishment notice
A time-sensitive notice with review and hearing procedures that should be read carefully.
Read the plain-language guide →Document 06DOJ or OIG communication
A sober, fact-specific stage where independent legal advice may be appropriate.
Read the plain-language guide →
Verified exposure facts
Three thresholds worth understanding.
Personal guaranty threshold
SBA’s published terms state that personal guarantees were generally required above this original loan amount.
Official source ↗AWG ceiling
Treasury states administrative wage garnishment may reach up to 15% of disposable pay for eligible federal nontax debt.
Official source ↗Separately, SBA OIG reported 369,588 charged-off COVID EIDLs over $25,000, totaling more than $47 billion, as of December 18, 2024. Read the audit source ↗
Illustrative 30% scenario
Method and sourcesWhat could added collection costs look like?
$10K$2M
Illustrative added cost$45,000Balance × 30%
Illustrative balance after cost$195,000Balance × 130%
Separate collection tool: Treasury says administrative wage garnishment may reach up to 15% of disposable pay for eligible delinquent federal nontax debt.
Important: Federal rules allow variable collection fees based on program costs and do not publish one universal 30% rate. This calculator is a planning scenario, not an estimate of your actual charge.
Decision framing
Act on the notice you have, not the outcome you fear.
Waiting can narrow practical response time. Acting does not mean accepting unsupported claims or making rushed commitments.
- Identify the sender and deadline
- Pull the original loan documents
- Confirm business and collateral status
- Use official contact channels
- Every letter means the same thing
- A collection cost is a fixed percentage
- Online advice fits your loan tier
- A private company represents the government
How it works
A short triage before any conversation.
- 1
Answer 5 quick questions
Your loan status, how much you borrowed, where the loan is now, whether the business is open, and any other debts.
- 2
See your full report, free
Add your email and the report opens right on screen. It shows how serious things are and what the SBA or Treasury can do at your stage.
- 3
Choose your next step
Read the official sources, gather your records, or ask to be connected with an independent professional.
How the introduction works
The report is free. A professional introduction is separate.
Your exposure report is free and does not require a consultation. You can read and use it on your own. If legal, tax, restructuring, insolvency, or federal-debt review may help, you can ask us to identify an appropriate independent professional separately, after you have your report. Independent professionals may compensate EIDL Pros for an introduction; using one is never required and no result is promised.
Transparent by design
What this process does
Your preliminary band is computed from the answers you provide, not from a promise of an outcome.
SBA, Treasury, GovInfo, and oversight materials are reviewed and dated.
You can request a report without agreeing to automated calls or texts.
EIDL Pros is a private educational and triage resource, not a government agency or law firm.
Is EIDL Pros part of the SBA or Treasury?
No. EIDL Pros is a private company and is not affiliated with, endorsed by, or connected to any government agency.
Does a charge-off erase an EIDL balance?
No. Charge-off is an accounting and servicing status; it does not by itself establish that the debt is forgiven or no longer collectible.
Is a 30% Treasury collection fee automatic?
Federal rules allow collection costs that can vary by program and circumstance. The calculator uses 30% only as a clearly labeled planning scenario.
Can Treasury garnish wages without a court order?
Treasury states that administrative wage garnishment can apply to eligible delinquent federal nontax debt without a court order, subject to notice and hearing procedures.
Is the exposure report legal advice?
No. It is educational triage based on your answers and published sources. Legal questions should be taken to a qualified attorney.
Start with what you know
Your letter, loan size, and business status can change the picture.
Answer 5 quick questions and see exactly where your EIDL stands, free, in about a minute.
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