SBA Introduces 60-Day Goodwill Exception Period, Expands Hardship Accommodation Plans

Published on January 5, 2024

WASHINGTON – The U.S. Small Business Administration (SBA) has announced expanded flexibility and accommodations for COVID EIDL and PPP borrowers to help bring them into compliance and avoid the repercussions of defaulting on a government loan.

For COVID EIDL and PPP borrowers with loans under $100,000, the SBA has implemented a 60-day goodwill exception period starting January 1 and lasting through March 3, 2024. During this period, the SBA will build on its extensive outreach to affected businesses to ensure that PPP borrowers know how to apply for forgiveness and COVID EIDL borrowers are aware of all repayment options — including the opportunity for hardship repayment plans. Further, the SBA will refrain from escalating collections activities until after the goodwill exemption period.

Small business borrowers in delinquency or default who take action and obtain good standing with the SBA will improve their long-term financial health substantially. The benefits of getting, and staying, current on SBA loans include better credit scores, which make it cheaper and easier to buy a home or car in the future; eligibility for future government financial assistance, like a VA loan or help after a natural disaster; and, in some cases, avoidance of federal and private collections activities which can include withholding tax returns and wage garnishment.

For PPP Borrowers:

Hundreds of thousands of PPP borrowers can avoid default and the repercussions that come along with it without repaying the loan. Those who have met the payroll requirements can simply complete the PPP forgiveness application, which takes most borrowers less than 15 minutes. If PPP borrowers are unsure if their loan has been forgiven, they can check by logging in to the MySBA loan portal. Once logged in, borrowers will see all of their SBA loans, including PPP loans, and the status of each loan. For PPP loans, the status will show “paid in full” if the PPP loan has been forgiven.

PPP borrowers who are not sure if their loan has been forgiven and see other statuses should apply for forgiveness immediately. See the SBA website for instructions on how to apply for PPP forgiveness.

Borrowers who need assistance with forgiveness can contact SBA at our dedicated forgiveness call center: 877-552-2692. The call center is open Monday through Friday from 8:00 a.m. – 5:00 p.m. ET.

For COVID EIDL Borrowers:

All COVID EIDL borrowers must repay their loans, but the SBA has programs to help – including expanded hardship accommodation plans. COVID EIDL hardship accommodation plans significantly lower monthly payments – sometimes as low as $25 per month – for six months, and then payments gradually increase over a multi-year period. More information for COVID EIDL hardship accommodation plans is available on the SBA website. Many borrowers can apply for a hardship accommodation plan directly through the MySBA loan portal. Once logged in, COVID EIDL borrowers can click “Loan Summaries” in the toolbar, then “Hardship Accommodation Plan” in the bottom right corner, and finally “Learn More and Enroll.”

For further assistance, please contact COVID-19 EIDL Customer Service at 833-853-5638 (TTY:711), email COVIDEIDLServicing@sba.gov, or send a message through the MySBA Loan Portal. COVID-19 EIDL Customer Service is open Monday through Friday from 8:00 a.m. to 8:00 p.m. ET.

For All Borrowers

The SBA offers free or low-cost counseling for small businesses through its national network of Resource Partners. These partner organizations may be able to help small businesses fit loan repayments into their budgets, provide information on applicable tax benefits, and offer other counseling services. Contact your local District Office for assistance with locating a Resource Partner to address your needs or search to see what is available in your area.

The SBA remains committed to its core mission of supporting America’s small businesses and will make a significant effort to bring borrowers back into compliance before escalating collection activities.

For more information about SBA’s loan programs, financial assistance, and other services, visit sba.gov.

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Related programs: Disaster, PPP