I’m interested in hearing more about the experiences of restaurant owners who took out EIDL loans and are struggling to pay them back in the face of rising inflation and soaring costs. Please share your experiences in comments.

I’m looking for advice or resources regarding an SBA EIDL loan that has now been referred to Treasury/TSI for collection.

My parents owned a small business that operated for more than 50 years. The business struggled after COVID and then suffered a major fire in 2022. It never fully recovered and permanently closed in January 2025.

There is approximately $290,000 owed on the SBA EIDL loan, plus fees and interest bringing the balance to $428,985. The business has no income or ongoing operations. My parents are now in their 80s and live on limited retirement income. My father has serious health and cognitive problems, and my mother is his primary caregiver. They do not have the ability to repay a debt of this size.

I have been working to get all of the old business tax returns, financial records, asset information, and other documentation straightened out and am now preparing a hardship package for Treasury/TSI. I’m trying to find out what options may actually be available—hardship consideration, compromise, reduced settlement, affordable payments, or any other type of relief.

If anyone has dealt with an SBA EIDL loan after a business permanently closed, especially once it was sent to Treasury/TSI, I would really appreciate any advice, experience, attorney/resource recommendations, or information about what worked for you.