COVID EIDL · protect yourself
EIDL “forgiveness” scams: how to spot them
The surest sign of an EIDL scam is that it offers the one thing the government does not: forgiveness. Here is how the pitch works, and what is actually free.
Why the scams work
Millions of borrowers owe money they are struggling to repay, the honest answer is grim, and hope sells. Into that gap steps an industry that borrows the SBA’s credibility — official-looking letters, urgent deadlines, the word “forgiveness” — to charge fees for outcomes it cannot guarantee.
Red flags
- The word “forgiveness” — there is none for COVID EIDL.
- A guaranteed outcome or a specific settlement percentage promised up front.
- A large upfront fee to file paperwork you can file for free.
- Claims or implications of being affiliated with or endorsed by the SBA.
- Pressure and artificial deadlines (“act now or lose eligibility”).
What’s actually free
Dealing with the SBA directly costs nothing. Hardship requests go through the MySBA Loan Portal or CESC@sba.gov. An Offer in Compromise is filed with the SBA at no charge. If a debt is with the Treasury, you deal with the Treasury. Paid help from a licensed attorney or accountant can be worth it — but that is a professional you vet, not a lead-gen ad.
If you’ve been targeted
Do not send money or your MySBA login to an unsolicited “forgiveness” outfit. Report suspected fraud to the SBA Office of Inspector General hotline and the FTC. Then go to the source — the SBA servicing center — and start the real process yourself.
Common questions
Are EIDL forgiveness companies legitimate?
Be very wary. COVID EIDL is not forgivable, so any company promising forgiveness, guaranteeing settlements, or charging large upfront fees is a red flag. The SBA's own hardship and settlement processes are free.
How do I know if an EIDL relief offer is a scam?
Watch for the word 'forgiveness,' guaranteed outcomes, upfront fees, claimed SBA affiliation, and pressure deadlines. Legitimate help comes from a licensed attorney or accountant you vet.
Where do I report an EIDL scam?
Report suspected fraud to the SBA Office of Inspector General hotline and the FTC, then deal with the SBA servicing center directly to start the real process.
Related
Rules and figures here are current to mid-2026 and can change. This is education, not legal or financial advice — EIDL situations are individual. The SBA’s own hardship and settlement processes are free: deal with the SBA directly through the MySBA Loan Portal or CESC@sba.gov, and talk to a licensed attorney before an Offer in Compromise or bankruptcy. Portfolio figures come from SBA reporting and public records.