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What is the SBA Hardship Accommodation Plan (HAP) for EIDL Borrowers?
Navigating financial hardship can be challenging, but you don’t have to do it alone. The SBA is offering a Hardship Accommodation Plan (HAP) designed specifically for COVID-19 Economic Injury Disaster Loan (EIDL) borrowers facing short-term financial difficulties
This plan allows eligible borrowers to reduce their payments to just 10% of the usual amount for six months, giving you the breathing room needed to get back on track. Whether your loan is past due or you’re struggling to meet upcoming payments, the HAP can provide the relief you need.
Who Is Eligible?
The Hardship Accommodation Plan is available to a wide range of COVID-19 EIDL borrowers. You may be eligible if your loan is currently in repayment, even if it’s past due or in default. Specifically, this program is open to:
Loans that are in repayment, including those that are past due.
Loans that are in default (more than 120 days late on a payment) but not yet sent to the Treasury for extra collection steps.
Loans that have not been transferred to Treasury collections.
If your loan has already been sent to the Treasury, you will need to work directly with them for further steps but TwoSmith Capital can help you with that.
Understanding the Hardship Accommodation Plan Terms
The SBA's Hardship Accommodation Plan is designed to offer immediate financial relief.
Here’s what you need to know:
Reduced
Payments
You can reduce your payments to 10% of the usual amount for six months.
Interest
Accrual
IDuring this period, interest will continue to accrue on your loan, which may increase or create a balloon payment due at the end of your loan term.
Renewal
Option
After the six-month period, you have the option to renew the plan if needed.
Voluntary Payments
You can choose to make larger payments during the accommodation period.
Post-Plan Payments
Regular monthly payments will resume after the six-month period. It's important to stay current with these payments to avoid default.
Let TwoSmith Capital Guide You Through the Enrollment Process
Navigating the enrollment process for the SBA's Hardship Accommodation Plan can be complex, but you don't have to do it alone. At TwoSmith Capital, we specialize in helping business owners like you successfully enroll in this program, ensuring you take the right steps based on your unique situation. Here’s how we can help:
If your loan amount is less than or equal to $200,00:
- Reach out to TwoSmith Capital to get personalized guidance on setting up your MySBA Loan Portal account.
- We will walk you through navigating to the “Loan Summaries” section and identifying the Hardship Accommodation Plan option.
- Our team will assist you in completing the enrollment process correctly, avoiding common pitfalls that could delay your relief.
If your loan amount exceeds $200,000:
- Contact TwoSmith Capital directly. We will coordinate with SBA specialists on your behalf, ensuring your application is handled with care.
- Our experts will communicate with COVID-19 EIDL customer service for you, streamlining the process and saving you time and stress.
By partnering with TwoSmith Capital, you’ll have the assurance that your enrollment is managed efficiently and correctly, so you can focus on what matters most—your business.
Frequently Asked Questions (FAQs)
The Hardship Accommodation Plan (HAP) allows COVID-19 EIDL borrowers to reduce their monthly payments to 10% of the usual amount for six months, providing relief during financial difficulties.
Eligible borrowers include those with loans in repayment, past due loans, and loans in default (up to 180 days late) but not yet sent to the Treasury for extra collection steps.
You can enroll through the MySBA Loan Portal by navigating to “Loan Summaries” and selecting the Hardship Accommodation Plan. For loans over $200,000, contact customer service.
Missing a payment during the Hardship Accommodation period can cause your loan to go into default again, leading to serious consequences. It’s recommended to enroll in autopay to avoid missing payments.
Yes, borrowers have the option to renew the Hardship Accommodation Plan after the initial six-month period, though the terms may vary.
Yes, interest will continue to accrue during the Hardship Accommodation period, which may result in a balloon payment at the end of the loan term.
Yes, borrowers can voluntarily make larger payments during the Hardship Accommodation period if they choose.
If your loan has been sent to Treasury for extra collection steps, you will need to work directly with Treasury for any further arrangements.
You can apply for the Hardship Accommodation Plan starting 60 calendar days before your first payment due date.
After the six-month period ends, your regular monthly payment amount will resume. It’s crucial to keep up with these payments to avoid defaulting on your loan.
Secure Your Business's Financial Future
The SBA Hardship Accommodation Plan offers crucial support for business owners facing financial hardship due to the COVID-19 pandemic. By reducing your loan payments for six months, you can focus on stabilizing your business without the added stress of full loan payments.
Don’t wait until it’s too late—take advantage of this opportunity to secure your financial future.
