For countless small business owners, the COVID-19 Economic Injury Disaster Loan (EIDL) offered critical support during an unprecedented period. These loans were quickly issued, featuring minimal underwriting and deferred payments, enabling businesses to withstand shutdowns, revenue declines, and uncertain conditions.

However, what once provided relief has now become a source of anxiety and confusion for many small business owners due to monthly payments or referrals to the U.S. Department of the Treasury (Treasury) for collection.

This article offers insights and resources to understand what it means when an EIDL is referred to Treasury and how you can take action to safeguard your business.

Why EIDL Loans are Being Sent to Treasury

Beginning in September 2025, the Small Business Administration (SBA) started referring delinquent EIDL loans to the U.S. Department of the Treasury’s Bureau of Fiscal Service for collection.

Once a loan has been transferred to Treasury for collection, it cannot be returned to SBA. At that point, SBA no longer has authority to offer relief, reverse defaults, or negotiate payments. Under federal law (31 U.S.C. § 3711 and 31 CFR 285.12), agencies must refer delinquent debts to Treasury once they are between 60 and 180 days past due. After referral, the debt enters the federal collection system and is handled through Treasury programs. Treasury may choose to keep the debt in the Centralized Receivables Service (CRS) until it’s paid or resolved, or transfer it to Cross‑Servicing for more aggressive collection measures. Once transferred, the debt becomes eligible for the Treasury Offset Program (TOP).

My EIDL Loan was Referred to Treasury – What Now?

If your debt has been referred from SBA to Treasury for collection, identify which program is servicing your debt: CRS, Cross-Servicing Program, TOP, or a private collection agency. The notice you received should specify which program or agency is responsible for managing debt collection. Additional contact information can be found here: Debt Management Contact Us Page

After Treasury receives the debt from SBA, borrowers can expect:

• A demand letter mailed within approximately 21 days
• The addition of collection fees up to 30% of the loan balance
• Assignment to one of Treasury’s collection programs
• Potential reporting to credit bureaus
• Potential for wage garnishment, offsets, or referral to a private collection agency

Understanding the Treasury Collection Process

Centralized Receivables Service (CRS): Early-Stage Collection

CRS is Treasury’s initial billing and collection system. If your debt is with CRS, this is your last, relatively low-pressure opportunity to act.

CRS sends billing notices, accepts voluntary payments, and may offer payment plans based on your financial condition. Once your debt is managed by CRS, you can request a payment plan, submit financial statements showing your inability to pay the debt in full, and dispute an incorrect debt balance using the CRS Dispute Form.

After receiving a CRS letter, you should:

• Read the letter carefully
• Confirm the debt is accurate
• Contact CRS using the contact information listed on the letter
• Ask about potential payment plans before further escalation

 
If CRS notices are ignored, the debt can automatically move into Cross-Servicing, triggering harsher enforcement actions.

Cross-Serving Program

The Cross-Servicing Program is Treasury’s primary enforcement mechanism for delinquent federal debt.

Collection methods may include:

• Demand letters and phone calls
• Reporting to credit bureaus
• Wage garnishment
• Referral to the Department of Justice for litigation
• Referral to private collection agencies
• Treasury Offset Program enrollment

 
You can contact the Cross-Servicing Call Center by calling 1-800-289-7388 for additional information. To confirm you owe a debt and discuss payment or dispute options, contact a debt recovery analyst by calling 1-888-826-3127.

Treasury often assigns EIDL debts to private collection agencies through Fiscal Service’s Cross-Servicing program. Private collection agencies are authorized to:

• Communicate directly with debtors
• Negotiate lump-sum or installment agreements
• Assist with financial hardship reviews
• Pursue wage garnishments if necessary

 
If you are contacted by a private collection agency, confirm they are a Treasury-authorized agency, respond promptly, and get all agreements in writing. Ignoring collection agency communications may lead to stricter enforcement measures.

Additional information and guidance regarding Treasury’s Cross-Servicing program can be found via the following links:

• Cross-Servicing Program for Debtors FAQ Page
• Debt Collection Resources for Cross-Servicing Debtors
• To be considered for a payment agreement or financial relief, debtors must complete a Commercial Financial Statement.
• The Debt Collection Legal Authorities & Tool/Action Reference Chart

 
If you believe you do not owe the debt, the amount is incorrect, or payments were misapplied, you can submit a Cross-Servicing Debtor Dispute Form to Treasury or dispute the debt by phone with a debt recovery analyst by calling 1-888-826-3127. The form, along with any additional supporting documentation detailing why you do not owe the debt or why you think the amount due is incorrect, should be sent to the U.S. Department of Treasury (P.O. Box 830794, Birmingham, AL 35283-0794).

Interest and penalties will continue to accrue during any debt dispute.

Treasury Offset Program (TOP)

If your EIDL loan enters the TOP, Treasury may seize funds the government owes you, including:

• Federal tax refunds
• Social Security payments
• Federal salary or contractor payments
• Certain state payments

TOP offsets can occur with little or no advance warning once eligibility is triggered.

Additional information and guidance regarding the Treasury Offset Program can be found via the following links:

• TOP FAQ Page
• Resources for TOP Debtors
• TOP Program Rules and Requirements Fact Sheet
• How TOP Works
• TOP State Programs

Bankruptcy Considerations

If you have filed for bankruptcy and are subject to an automatic stay, inform Treasury immediately so they can cease normal collection actions.

Avoiding Treasury Referral

Once an EIDL loan becomes delinquent, SBA should send demand notices every 30 days via email, direct mail, or through the MySBA Loan Portal. After about 120 days of nonpayment, the loan enters default and is transferred to Treasury.

If you’ve received an SBA notice regarding missed payments on your EIDL loan, check the status of your loan in the MySBA Loan Portal and contact the SBA at CESC@sba.gov and your local SBA district office.

Borrowers undergoing financial hardship may qualify for a one-time payment assistance plan. Borrowers who meet certain conditions can potentially reduce their loan payments by 50% for six months. More information about payment assistance can be found on the SBA website: Manage your EIDL.

For additional information about EIDL loans and Treasury debt collection, contact the NFIB Legal Center at info@nfib.org.

Updated  March 23, 2026