SBA & EIDL Loan Defaults: Eliminate Government-Backed Debt Through Subchapter V
Struggling to negotiate your SBA or EIDL loan?
Our experienced debt relief attorneys help small and mid-sized businesses use Subchapter V to restructure or eliminate government-backed loans when negotiation falls short.
SBA and EIDL Loans Were Lifelines—Until They Became Anchors
Many businesses took out SBA or EIDL loans during the pandemic to survive. But now those same loans are dragging them down—especially when payments resume or maturity hits. Even once-profitable companies are finding it hard to move forward with this debt hanging over them.​​
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Negotiating With the SBA Isn’t Easy—and Often Goes Nowhere
If your loan was issued by a private lender but backed by the SBA, there may be room to negotiate. But for direct SBA-issued EIDL loans, Offers in Compromise are rarely granted—and policies shift often. Many business owners waste precious months chasing relief that never comes.
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We’ve seen firsthand how unpredictable the process can be. Promising negotiations stall. Paperwork gets lost. Decisions drag on. And all the while, interest and penalties grow.​
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Subchapter V Offers a Faster, More Predictable Path to Relief
Unlike uncertain negotiations, Subchapter V gives you a legal structure to deal with SBA or EIDL loans in a way that’s fast, fair, and binding.
With Subchapter V:
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You stay in control of your business.
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You can reduce or eliminate unsecured SBA/EIDL debt.
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The government can't override a court-approved plan.
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You get certainty, finality, and a clean slate.
If the loan is personally guaranteed, you may also gain protection from personal liability depending on the plan structure.
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Real Solutions for Real Businesses
​We’ve helped companies across industries deal with SBA and EIDL debt using Subchapter V. Whether you're an overwhelmed service provider, a struggling retailer, or a construction firm squeezed by overleverage, we can help you take control and move forward.
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You Don’t Have to Stay Stuck
If SBA or EIDL debt is keeping your business from growing—or even surviving—it’s time to explore better options. Subchapter V was designed for situations like yours.
Let’s talk confidentially about your options.