First, and I must stress, EIDL loans are not forgivable. They were intended to help small businesses recover from the economic impacts of the Covid-19 pandemic.
However, EIDL Advance funds are like grants and do not have to be repaid.
More information is available on the SBA website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl
If you are unsure what you received, but only can recall EIDL being somehow related, then please find your paperwork to verify whether you have a loan or grant. If you cannot locate your paperwork, you can contact the SBA at 833-853-5638 for a copy as the portal is now closed.
So what should you do if you have a EIDL loan and can’t afford to repay it? I have been hearing that folks are receiving payment notices that are coming due soon.
Bankruptcy is an option as these loans are 100% dischargeable. We can file that for you. In order to avoid any fraud issues, it’s best to gather any documents that show you spent the money for regular business expenses. Marketing expenses are fine as well. If you used the money for personal reasons, then please discuss that with a bankruptcy attorney before filing in order to avoid having to fight an adversary case for non-discharge.