SBA Ends Hardship Accommodation Plan for EIDL Loans: What Borrowers Need to Know
As of March 19, 2025, the Small Business Administration (SBA) has officially ended its Hardship Accommodation Plan (HAP) for COVID-19 Economic Injury Disaster Loans (EIDL). This program had provided temporary relief to struggling small business owners by allowing reduced monthly payments for a limited time.
What Does This Mean for Borrowers?
If you were already enrolled in the HAP before the cutoff date, you will be allowed to continue making reduced payments until your current hardship term ends. However, the SBA will no longer allow automatic renewals of the program, and there’s no guarantee of future extensions.
This marks a significant shift, as many business owners relied on the program to help manage cash flow while navigating post-COVID recovery challenges.
New One-Time Assistance Available
For those who did not enroll in the HAP, the SBA is offering a one-time, six-month payment assistance option. To be eligible, borrowers must meet all of the following criteria:
- You have not previously enrolled in the Hardship Accommodation Plan
- You are less than 120 days past due on your EIDL loan
- Your loan has not been charged off
Borrowers will also need to submit a written explanation of temporary financial hardship to apply.
How to Apply
To request this one-time assistance or learn more, you can reach out to the SBA directly:
- Phone: 833-853-5638
- Email: COVIDEIDLServicing@sba.gov
What You Should Do Now
It’s crucial for small business owners with EIDL loans to stay ahead of their repayment obligations. With the HAP ending, full payments will resume once a hardship period expires, and options will become more limited.
If you’re concerned about meeting your upcoming payment schedule—or if you need access to short-term working capital while staying current on your obligations—consider speaking with a financial advisor or lender about alternative funding options.
Staying proactive is key. Explore your available options, and make sure your business is financially prepared for what’s ahead.
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