SBA COVID EIDL Glossary

Economic Injury Disaster Loan issued by the SBA during the COVID-19 pandemic. These loans carry a 3.75% interest rate (2.75% for non-profits), a 30-year term, and are secured by business assets. Over 3.9 million loans were issued totaling approximately $390 billion.

The federal debt collection program operated by the Bureau of the Fiscal Service. Under the Debt Collection Improvement Act of 1996, federal agencies must refer eligible debts more than 120 days delinquent to Fiscal Service for collection through the Cross-Servicing program.

A centralized offset program that intercepts federal payments (tax refunds, Social Security benefits, federal salary, vendor payments) to satisfy delinquent federal debts. A 60-day pre-offset notice is required before the first offset. Social Security offsets are limited to 15% of the benefit amount.

A federal collection tool under 31 C.F.R. 285.11 that allows Treasury to garnish up to 15% of a debtor's disposable pay without a court order. Debtors have the right to request a hearing before or during garnishment.

The Treasury bureau responsible for collecting delinquent federal debts through the Cross-Servicing program. It deploys the Treasury Offset Program, Administrative Wage Garnishment, and private collection agency contractors on behalf of creditor agencies like SBA.

The information system used by the Bureau of the Fiscal Service to track referred federal debts. When a debt enters FedDebt, it becomes eligible for Treasury collection tools including TOP and AWG.

The federal agency that owns the debt and retains decision-making authority over settlements, recalls, and certain disputes. For COVID EIDL loans, SBA is always the creditor agency -- even after the loan is referred to Treasury for collection. The Bureau of the Fiscal Service collects on SBA's behalf but does not own the debt.

A discretionary creditor-agency action where SBA directs the Bureau of the Fiscal Service to return a referred debt. Recall is governed by TFM 5030.50d and is not guaranteed. It is not a borrower program and is not hardship-based.

The section of the Treasury Financial Manual that governs when and how a creditor agency may recall a debt from Cross-Servicing. It identifies both mandatory recall grounds (such as active bankruptcy stay) and discretionary grounds (such as certification defects).

The current SBA relief program for COVID EIDL borrowers that offers up to 50% payment reduction for a defined period. Available once every five years. Not available after Treasury referral. Replaced the earlier Hardship Accommodation Plan (HAP).

A discontinued SBA relief program that was the predecessor to Payment Assistance. HAP is no longer offered. Borrowers who previously had HAP should consider Payment Assistance if eligible.

The SBA Standard Operating Procedure for Loan Servicing. This document governs how SBA services disaster loans including COVID EIDL, covering topics from payment processing to servicing actions (subordination, collateral release) to charge-off and referral criteria.

The SBA policy notice that established the Payment Assistance program for COVID EIDL loans, defining eligibility criteria, terms, and implementation procedures.

The federal regulation governing Administrative Wage Garnishment of non-tax debts owed to the United States. Authorizes garnishment of up to 15% of disposable pay without a court order. Provides for hearing rights before or during garnishment.

The federal regulation governing centralized offset of federal payments to collect delinquent non-tax debts. This is the legal authority for the Treasury Offset Program.

The online self-service platform (mysbaloan.sba.gov) where COVID EIDL borrowers can view loan status, make payments, upload documents, and manage their accounts.

The SBA unit responsible for servicing active COVID EIDL loans. Handles payment processing, servicing action requests, Payment Assistance applications, and general borrower inquiries. Reachable at CovidEIDLServicing@sba.gov.

The binding contract between the borrower and SBA that governs the COVID EIDL loan. Establishes use-of-proceeds restrictions, recordkeeping requirements, collateral pledges, and repayment terms.

An accounting action where SBA writes a delinquent loan off its active books. A charge-off does NOT eliminate the debt -- the full balance (including accrued interest) remains owed. Charge-off typically precedes referral to Treasury for collection.

The federal law (31 U.S.C. 3711, 3716, and related sections) that requires federal agencies to refer eligible delinquent debts to the Bureau of the Fiscal Service for Cross-Servicing after 120 days of delinquency, with certain exceptions.

A settlement proposal where a borrower offers to pay less than the full balance to resolve the debt. For COVID EIDL, OIC requires SBA approval as creditor agency. Treasury cannot independently approve a settlement -- only SBA can authorize acceptance of less than the full amount owed.

SBA's Servicing Action Request form used by borrowers to initiate requests for release of collateral, subordination, change of ownership, assumption, and relocation. Must be accompanied by action-specific supporting documentation as defined in SOP 50 52 2.