SBA loan collections after closing a business
The SBA continues sending loan collection letters to people whose businesses were completely wiped out during the 2020 pandemic. Owners are facing demands to repay debt when they have already lost everything they built and have nothing left to give.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Signing and sharing online petitions to pressure Congress into granting loan forgiveness
- 2Checking loan terms to confirm if the loan is under $200k and lacks a personal guarantee to avoid personal obligation
- 3Petitioning Congress for loan forgiveness and relief
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“My folks ran a print shop for 20 years before 2020 wiped them out, theyre still getting letters about their loan and its like, what do you want them to do, sell a kidney?”source ↗
“My husband and I lost two businesses during the COVID-19 pandemic, and we know we're not alone. Thousands of hardworking business owners are still facing SBA loan collection demands after losing everything they worked so hard to build.”source ↗
“My husband and I lost two businesses during the COVID-19 pandemic, and we know we're not alone.”source ↗
Where this came up
People with this problem also raised
- 3Why am I in collections when automatic payments failed?
- 5How to recover mentally after shutting down a business
- 3How to find a new business idea after shutting down a company
- 4How do I deal with a 50/50 business partner who does no work?
- 2How to get approved for housing with a bankruptcy
- 3How do I know if I should file for bankruptcy?