COVID EIDL Relief Options: What Is Actually Available
This guide covers every relief option currently available for COVID EIDL borrowers, including Payment Assistance (the current program), reinstatement before Treasury referral, and what is NOT available after your loan has been sent to collections. No sugarcoating -- just the actual landscape.
The Current Relief Landscape
Relief availability depends entirely on where your loan sits in the servicing lifecycle. The single most important dividing line is whether your loan has been referred to the Bureau of the Fiscal Service for Treasury Cross-Servicing. Before that line, several SBA programs apply. After that line, most relief options disappear.
Key fact: Payment Assistance is not available after Treasury referral. If your loan has been transferred to the Bureau of the Fiscal Service, your options shift to dispute review and SBA creditor-agency review -- not hardship-based relief.
Pre-Referral Relief Options
Payment Assistance (Current Program)
Offers up to 50% payment reduction for a defined period. Available once every five years. Requires the loan to be less than 90 days past due (or meet specific exception criteria). This is the primary relief tool for borrowers still in SBA servicing.
Reinstatement (Pre-Referral)
For charged-off loans that have not yet been referred to Treasury, bringing the loan current (paying arrearages) may reinstate active servicing status and restore eligibility for normal servicing actions.
Deferment / Modification
In limited circumstances, SBA may defer payments or modify terms. This is less common than Payment Assistance and typically requires specific qualifying events. Contact the COVID EIDL Servicing Center for current availability.
Post-Referral: What Is NOT Available
Once your loan is in Treasury Cross-Servicing:
- x Payment Assistance is not available
- x Deferment is not available through SBA servicing
- x Standard modification is not available
Post-referral, your pathways shift to: Treasury debtor dispute (challenging the balance or notice), SBA creditor-agency review (requesting SBA evaluate the referral), or Offer in Compromise (settlement, which still requires SBA approval as creditor agency).
HAP vs. Payment Assistance
| Feature | Hardship Accommodation Plan | Payment Assistance |
|---|---|---|
| Status | Discontinued (historical) | Current and active |
| Reduction | Varied by case | Up to 50% |
| Frequency | N/A (discontinued) | Once every 5 years |
| Post-Referral | Was not available | Not available |
Frequently Asked Questions
Am I eligible for COVID EIDL Payment Assistance?
Payment Assistance is available to borrowers whose loans are still serviced by SBA (not referred to Treasury), who are less than 90 days past due or meet other criteria, and who have not received Payment Assistance within the last five years. The full eligibility screen has approximately 12 criteria.
Is the Hardship Accommodation Plan (HAP) still available?
No. HAP was replaced by the Payment Assistance program. HAP is no longer offered. Borrowers who previously had a HAP and need further relief should apply for Payment Assistance if eligible, which offers different terms and criteria.
Can I get Payment Assistance after my loan was sent to Treasury?
No. Payment Assistance is a pre-referral SBA servicing action. Once a loan is certified and referred to the Bureau of the Fiscal Service under Treasury Cross-Servicing, Payment Assistance is not available. Post-referral options include disputing the debt or requesting SBA creditor-agency review.
Can I reduce my COVID EIDL payments?
If your loan is still with SBA, Payment Assistance may reduce your monthly payment by up to 50% for a defined period. If your loan has been referred to Treasury, payment reduction is not available through standard channels. Consult the eligibility criteria carefully before applying.