Covid EIDL Loan Forgiveness helps small businesses reduce financial burdens caused by the pandemic. Using the SBA Loan Portal, applicants can submit forgiveness requests efficiently. Learn how to navigate the portal, check eligibility, and complete the necessary steps to secure loan forgiveness and maintain financial stability.
What is COVID EIDL, And Why Are People Talking About Forgiveness?
The Small Business Administration (SBA) is a program that was initiated as the COVID EIDL to offer loans at low interest rates to small businesses who suffered as a result of the pandemic.
In contrast to the Paycheck Protection Program (PPP), which had an official process of loan forgiveness, COVID EIDL loans have to be repaid, as per the official SBA guidelines.
Others who wrongly believe that the loan forgiveness can be applied in this case should be corrected because in most instances, this is not the case.
Why No Standard COVID EIDL Loan Forgiveness?
EIDL Loans cannot be forgiven
- The SBA has made it very clear that the COVID EIDL loans cannot be forgiven; the borrowers will have to repay the entire loan.
- Research of SBA programs affirms that it is only PPP loans that were widely forgiven.
A Major Difference between Grants and Loans
- Although the normal EIDL loan was to be repaid, the EIDL program had grant-like advances.
- Such programs as the Targeted EIDL Advance and Supplemental Targeted Advance offered money (up to a total of $15,000) that was not typically repayable.
- These development funds were more of grants and in most instances, the non-repayment (or automatic forgiveness) is automatic when utilized appropriately.
Risks and Scams
- Since the official process of forgiveness of typical EIDL loans does not exist, there has arisen some sort of fraudulent activity: fraudsters will purport to be able to forgive your COVID-EIDL loan.
- Even the SBA themselves cautions borrowers against false forms or offers of loan cancellations.
Realistic Alternatives: What You Can Do in Case You Find It Hard To Repay?
Even though you cannot usually “forgive a COVID EIDL loan, there are practical methods of receiving assistance via the SBA loan portal, among other assistance programs.
Hardship Accommodation Plans (HAP)
- The SBA provides EIDL borrowers under financial distress with a Hardship Accommodation Plan (HAP).
- By HAP, monthly payments may be drastically lowered – up to 25/month six months.
- The payments are high after the low-payment period and increment overtime.
Note: The automated HAP option ceased to be open as of March 19, 2025, but it is still possible to request assistance through the SBA loan officer (Borrower).
Goodwill Exception Period
- In January-March 2024 SBA introduced a 60-day period of goodwill exception among COVID EIDL borrowers with a loan smaller than 100,000.
- In this window, the SBA refrained from taking aggressive collection measures and urged impacted borrowers to request relief in repayment.
Application to SBA Loan Portal
- The SBA loan portal (such as MySBA) should be utilized by a borrower to monitor his or her loan status, payment options, and hardship plans.
- In your portal you are also able to know whether your loan is on the verge of default, request an accommodation, and keep up to date on your repayment schedule.
How to Use the SBA Loan Portal?
Visit MySBA or SBA loan servicing portal.
Check you loan information see the balance, interest rate and schedule of payments.
Inquire about support available find out whether you qualify as a Hardship Accommodation Plan.
Request a plan provide documentation (where necessary) and choose a repayment route.
It is possible even in the case of payment deferral, interest could be charged during periods of relief.
Keep track of your status often be vigilant on notices or policy changes that may make a difference in your loan.
Why People Search For COVID EIDL Loan Forgiveness?
Most borrowers are typing in the search engine COVID EIDL loan forgiveness hoping that they will be relieved just like they do PPP forgiveness.
Frequently, the media articles, blogs, and bogus emails relay erroneous information which adds to the mix of confusion.
It is best to clarify that there is a distinction between EIDL grants (advances) and repayable loans to enable business owners to make informed decisions.
FAQs
Am I eligible to seek COVID EIDL loan forgiveness?
No. The EIDL loans are not to be forgiven as standard COVID loans. They have to be repaid on the loan terms of SBA.
How about EIDL Advance or Targeted Advance – is it forgiven?
Yes, certain EIDL advances (such as Targeted EIDL Advance or Supplemental Targeted Advance) were to be considered grants and do not need to be repaid provided they are used appropriately.
How do I petition to have my COVID EIDL loan payment reduced?
A Hardship Accommodation Plan (HAP) can be requested through the portal of SBA loans. This program will make your monthly bills smaller and will provide you with space.
Do you have a scam on forgiveness that I need to beware of?
Yes. Con artists can pretend to be able to forgive or waive your EIDL loan. The SBA cautions that it is no forgiveness program on regular COVID EIDL loans and it is only official SBA communications that you should trust.
What is the way I can track or control my COVID EIDL repayment?
Check your loan, consider the options, request hardship assistance, and see the repayment status through the SBA portal (e.g., MySBA).