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The short answer
An SBA offer in compromise is program-specific and may be available in qualifying cases; SBA's published requirement letter excludes COVID EIDL from that offer process.
What changes the answer
Do not confuse PPP forgiveness, COVID EIDL servicing assistance and compromise of certain other SBA obligations. Identify the loan program, lender, liquidation status, collateral and guarantors before paying for an application.
A compromise requires the responsible authority's approval and supporting financial information. A lender's willingness to discuss an offer does not itself release SBA rights or a personal guarantee.
Sources: SBA: Offer in compromise requirements and COVID-EIDL exclusion; SBA: 7(a) loans; SBA: Current COVID-EIDL servicing and payment assistance
A practical next step
- Identify whether the loan is 7(a), 504, disaster, COVID EIDL or another program.
- Obtain the applicable servicing or compromise instructions directly.
- Ask who has approval authority and what release a payment would purchase.
Sources: SBA: Offer in compromise requirements and COVID-EIDL exclusion; SBA: 7(a) loans; SBA: Current COVID-EIDL servicing and payment assistance
Before you agree or pay
Reject a blanket promise that all SBA loans settle for a standard percentage. Review potential Treasury referral and any security interests with qualified counsel before assuming a negotiated business closure ends collection.
Sources: SBA: Offer in compromise requirements and COVID-EIDL exclusion; SBA: 7(a) loans; SBA: Current COVID-EIDL servicing and payment assistance
Keep the wider debt picture in view
Start with the loan authorization, note and latest notice. Write the program name exactly as it appears. If you also received an advance or a different pandemic-era loan, list it separately; a rule for one program is not evidence about the other.
Collateral comes before an offer review
SBA’s published offer-in-compromise requirement letter, updated August 11, 2026, says consideration follows liquidation of all collateral under agency guidelines and expressly excludes COVID EIDL forgiveness. This is not permission to dispose of collateral yourself. Ask the lender or responsible SBA office which program-specific process applies and obtain required approval for any sale.
- Identify every pledged asset and any lien or guarantee.
- Request written instructions for approved liquidation and accounting.
- Keep sale proceeds and expense records; an unexplained transfer can complicate review.
Sources: SBA: Offer in compromise requirements and COVID-EIDL exclusion
Your starting checklist
Keep these records privately. You do not need to upload them here.
Checks stay on this page only.
Questions worth asking
- Should I pay a consultant who promises a COVID EIDL compromise?
- Which part of my records changes this answer, and what should I do next?
Common questions
Should I pay a consultant who promises a COVID EIDL compromise?
SBA’s current published OIC requirement states that COVID EIDLs cannot be forgiven through that route. Ask for the exact official authority and eligible program before paying. General SBA compromise material for another loan program is not proof of COVID EIDL eligibility.
Where should I start?
Identify whether the loan is 7(a), 504, disaster, COVID EIDL or another program. Obtain the applicable servicing or compromise instructions directly.
Does using this guide change a payment or legal deadline?
No. Reading a guide or completing Find My Options does not file an appeal, answer court papers, stop collection, or create an agreement. Use the actual notice and the responsible court or agency to verify deadlines.
Sources & further reading
- SBA: Offer in compromise requirements and COVID-EIDL exclusion
- SBA: 7(a) loans
- SBA: Current COVID-EIDL servicing and payment assistance
Sources checked October 19, 2026. Rules and programs can change. This article uses AI-assisted research and has not received attorney or other professional signoff. Read our editorial standards.
Keep exploring
Educational guidance for U.S. debt situations. This page does not decide legal rights, eligibility, fees or suitability. If you have a court, property or service deadline, seek appropriate help promptly; reading this page does not extend it.