SBA Ends Hardship Plan for COVID EIDL Loans: What You Need to Know

We have learned that the Small Business Administration's Hardship Accommodation Plan (HAP) for COVID-19 Economic Injury Disaster Loans (EIDL) closed effective March 19, 2025. There is word of a very limited payment reflect program, but it is unconfirmed. 

We have not been able to find additional information as to whether or not the HAP will reopen or if this closure is permanent. However, it does align with the SBA's recent communications saying they plan to tighten repayment of loans.

For background - the COVID-19 Economic Injury Disaster Loan program was established to help small businesses weather the pandemic's financial challenges. The HAP has helped to ease repayment burdens for struggling businesses by allowing them to pay just 10% of their monthly loan payment to provide near-term financial relief.

We did hear, but could not confirm on the SBA’s website that there are emails coming out from the SBA allowing a new, one-time-only, 6 month payment assistance option exists for certain borrowers.

Eligibility criteria include:

• Never having enrolled in HAP,

• Being less than 120 days past due, and

• Not being in charged-off status.

You will need to provide a written explanation of a temporary financial hardship. To find out more contact the SBA COVID EIDL Customer Service Center by email at CovidEIDLServicing@sba.gov or by phone at 1-833-853-5638.

We will continue to monitor the situation closely and provide updates as more information becomes available.