COVID EIDL Servicing: The Complete Borrower Guide
COVID EIDL servicing covers the full lifecycle of your SBA loan from current status through delinquency, charge-off, and potential Treasury referral. This guide explains who services your loan, what each status means, and what actions are available at each stage.
What Is COVID EIDL Servicing?
COVID EIDL servicing refers to the ongoing administration of SBA Economic Injury Disaster Loans issued during the COVID-19 pandemic. The SBA COVID EIDL Servicing Center manages loans that remain in active status -- handling payments, servicing-action requests (subordination, collateral release, relocation), and relief applications like Payment Assistance.
When a loan becomes severely delinquent (typically 90+ days past due), the servicing path changes. The SBA may charge off the loan and certify it for referral to the Bureau of the Fiscal Service under the Treasury Cross-Servicing program. At that point, the loan moves from SBA servicing into federal collections.
The COVID EIDL Lifecycle
Understanding where your loan sits in this lifecycle determines which actions and options are available to you.
- Current -- Payments are on time. All servicing actions available.
- Past Due / Late -- 1-29 days behind. Late fees may apply. Contact the Servicing Center.
- Delinquent -- 30-89 days past due. Collection notices begin. Payment Assistance may be available.
- Default -- 90+ days past due. SBA initiates charge-off procedures.
- Charged Off -- The loan is written off SBA's active books. This does not eliminate the debt.
- Referred to Treasury -- The Bureau of the Fiscal Service takes over collection via Cross-Servicing.
Who Decides What?
Two distinct roles exist in the COVID EIDL collection process. The SBA is the creditor agency -- it owns the debt, sets the terms, and retains the authority to recall loans, approve settlements, and authorize Payment Assistance. The Bureau of the Fiscal Service (through its private collection agency contractors) is the collector -- it executes the Treasury Offset Program, Administrative Wage Garnishment, and debtor contact on behalf of SBA.
This distinction matters because your options depend on which entity holds decision-making authority for your situation. Post-referral, most relief options require SBA creditor-agency action, not Treasury action.
Frequently Asked Questions
Who services my COVID EIDL loan now?
The SBA COVID EIDL Servicing Center handles active COVID EIDL loans. If your loan has been referred to Treasury for collection, the Bureau of the Fiscal Service and its private collection agencies handle the account. You can check your MySBA Loan Portal for current status.
Is SBA still servicing COVID EIDL loans?
Yes. The SBA continues to service COVID EIDL loans that have not been referred to the Bureau of the Fiscal Service for Treasury Cross-Servicing. Borrowers with active loans can access the MySBA Loan Portal, request servicing actions, and apply for Payment Assistance if eligible.
What happens when a COVID EIDL goes into default?
When a COVID EIDL reaches 90+ days past due, it enters default. The SBA may charge off the loan and eventually refer it to the Bureau of the Fiscal Service under Treasury Cross-Servicing. This triggers federal collection tools including the Treasury Offset Program and Administrative Wage Garnishment.
Can SBA take my house for a defaulted COVID EIDL?
SBA holds a lien on business assets and, for loans over $200,000, a personal guarantee may apply. Whether SBA can reach personal real estate depends on the security agreement signed, the loan amount, and state law. Consult a licensed attorney for advice specific to your situation.