EIDL Hardship Accommodation Plan (HAP): Am I Eligible?

So your struggling to make your EIDL loan payments, and you’ve heard about something called the Hardship Accommodation Plan (HAP) that allowed borrowers to dramatically reduce there monthly payments for six months. Maybe you read an article from 2023 or 2024 describing HAP as a lifeline for borrowers experiencing financial hardship, offering payments as low as 10% of the standard amount. You’re thinking this might be exactly what you need to get through your current cash flow crisis, and your wondering: am I eligible for HAP? How do I apply? What are the requirements? The confusion is understandable, especially since there’s a lot of outdated information online about EIDL hardship programs.

Here’s what you need to know right up front: **The Hardship Accommodation Plan (HAP) for COVID-19 EIDL loans officially ended on March 19, 2025**. The SBA closed the program, which means borrowers can no longer apply for HAP accommodations as they existed previously. If you were already enrolled in HAP before it ended, your existing accommodation may continue for its designated period, but new enrollments are not being accepted. This is a significant change that many borrowers don’t yet realize has happened, because older articles and information about HAP are still circulating online and creating expectations that the program is available when it’s not.

However, the end of HAP doesn’t mean there are no options for borrowers experiencing financial hardship with there EIDL payments. The SBA has introduced a replacement program called “short-term payment assistance” that offers some relief for qualifying borrowers, though with different eligibility requirements and more restrictive terms than HAP had. This article explains what HAP was, why it ended, what the current alternatives are, who’s eligible for the new short-term payment assistance, how it differs from HAP, and what other options exist for borrowers who can’t make there EIDL payments. If your facing EIDL payment difficulties and were hoping HAP would help, read this entire article to understand what’s actually available now and what steps you should take.

What Was the Hardship Accommodation Plan (HAP)?

To understand what’s changed, it helps to understand what HAP was when it existed. The Hardship Accommodation Plan was a relief program the SBA offered to COVID-19 EIDL borrowers who were experiencing short-term financial challenges. HAP provided temporary payment reductions for six-month periods, with several tiers of assistance:

HAP Level 1 (10% payments): During the first six-month accommodation period, eligible borrowers could make payments equivalent to only 10% of there standard monthly payment. For example, if your normal EIDL payment was $1,000 per month, under HAP Level 1 you’d pay only $100 per month for six months. Critically, you didn’t need to catch up on any missed payments before qualifying—even borrowers who were already delinquent could enroll and immediately reduce there payments to 10%.

HAP Level 2 (50% payments): After completing the first six-month period, borrowers who still needed assistance could request a second six-month period at 50% of the standard payment. Using the same example, you’d pay $500 per month for the second six months. This provided continued relief while giving borrowers time to improve there financial situation.

HAP Level 3 (75% payments): A third six-month period was available at 75% of standard payments for borrowers who still needed accommodations after completing Levels 1 and 2. This gradually transitioned borrowers back toward full payments.

The program was remarkably generous in several ways: It didn’t require you to be current on your loan to apply (even defaulted borrowers could qualify as long as the debt hadn’t been referred to Treasury). Interest continued accruing on the full loan balance during HAP, but you weren’t expected to pay it—the reduced payments were all you owed during the accommodation period. You could enroll starting 60 days before your first payment was due, meaning even borrowers who hadn’t yet started repayment could get ahead of financial problems. And the SBA didn’t require extensive documentation initially—the application process was relatively simple through the MySBA Loan Portal.

HAP was a lifeline for thousands of borrowers whose businesses hadn’t fully recovered from the pandemic or who faced new financial challenges. It gave them breathing room to stabilize there businesses without defaulting on EIDL loans. However, the program also had critics who argued it was too generous, allowed borrowers to avoid legitimate repayment obligations indefinitely (by moving through Levels 1, 2, and 3 for 18 total months of reduced payments), and cost the government significant money in deferred collections.

Why Did HAP End?

The SBA ended the Hardship Accommodation Plan effective March 19, 2025, but the agency hasn’t issued detailed public statements explaining the specific reasons. However, several factors likely contributed to the decision:

Cost to the government. HAP represented significant deferred revenue for the federal government. Every borrower in HAP paying 10% or 50% of there standard amount meant the government wasn’t collecting the full payments that were owed, and interest was accruing but not being paid. With potentially thousands of borrowers in HAP at any given time, the cumulative financial impact was substantial. As the COVID emergency receded further into the past and federal budgets tightened, continuing such generous forbearance became harder to justify.

Concerns about program abuse. Some borrowers used HAP as intended—as temporary relief during genuine short-term hardship. But others may have used it to avoid paying when they had the ability to pay, or to extend payment deferrals indefinitely by moving through all three levels. There were reports of borrowers with profitable businesses enrolling in HAP simply to preserve cash flow, not because of genuine inability to pay. The SBA may have concluded that the program was being overused or misused.

Time since the pandemic. When HAP was introduced in 2022-2023, businesses were still dealing with immediate pandemic impacts and ongoing recovery challenges. By 2025, the pandemic is five years in the past, most businesses have either recovered or failed, and the justification for continued pandemic-related relief has weakened. The SBA may have decided that businesses should now be able to manage EIDL repayment without special accommodations, or that those who genuinely can’t afford repayment should pursue other solutions like offers in compromise.

Shift in policy priorities. Changes in SBA leadership or broader federal administration priorities could have influenced the decision to end HAP. Different leadership might have different views on how generous loan accommodations should be and whether scarce SBA resources should focus on supporting repayment flexibility versus other priorities.

Whatever the specific reasons, the result is clear: HAP as it existed is gone, and borrowers who were counting on it need to understand what alternatives exist now.

What Replaced HAP—What Options Exist Now?

While HAP has ended, the SBA has introduced a replacement program called “short-term payment assistance” for borrowers experiencing financial difficulties. However, this new program is significantly more restrictive than HAP was:

Short-term payment assistance requirements:

• You must prove your financial issue is **temporary** and that your business is viable long-term. The SBA wants to see that this is a short-term cash flow problem, not a fundamental inability to operate profitably.
• If you’ve ever been enrolled in HAP—at any level (10%, 50%, or 75%)—you are **NOT eligible** for the new short-term payment assistance. This restriction disqualifies many borrowers who used HAP when it was available and now need help again.
• The assistance is limited to a 50% payment reduction for six months (not the 10% option HAP offered), and it can only be used once every five years.
• You must apply through the MySBA Loan Portal and provide financial documentation demonstrating temporary hardship and business viability.

This new program is clearly designed to provide help only to borrowers who haven’t used prior assistance and who have genuinely temporary problems. It’s not meant to be a long-term solution or a way to avoid repayment for extended periods.

Other options for borrowers who can’t afford payments:

Offer in compromise: If you can’t afford to repay your EIDL loan in full, you can propose settling the debt for less than you owe. The SBA will consider offers in compromise from borrowers who demonstrate inability to pay the full amount. Success rates are around 35%, and accepted settlements are typically for significantly less than the full debt.

Extended repayment terms: You can request that the SBA extend your repayment period, which reduces monthly payments by spreading the debt over more years. This doesn’t reduce what you owe, but it makes payments more manageable.

Temporary deferment: In cases of severe short-term hardship (like a temporary business closure due to disaster), the SBA might grant temporary payment deferment where payments are paused completely for a period. Interest continues accruing, but you get immediate relief from payment obligations.

Payment plans for delinquent borrowers: If your already behind, you can propose a repayment plan to gradually catch up while also making current payments. The SBA will evaluate whether your proposed plan is realistic given your financial situation.

I Was Already in HAP When It Ended—What Happens to My Accommodation?

If you were enrolled in HAP before the program ended on March 19, 2025, the status of your existing accommodation depends on your specific situation. Generally, accommodations that were already approved and in effect would continue for there designated six-month period. The SBA wouldn’t typically terminate accommodations mid-period for borrowers who were already enrolled. However, what definitely has ended is the ability to renew HAP or move to a different level after your current period expires.

For example, if you were in HAP Level 1 (10% payments) and your six-month period ends in May 2025, you would not be able to enroll in HAP Level 2 (50% payments) afterward because the program no longer exists. You’d need to either resume full payments, apply for the new short-term payment assistance (if you meet the requirements), or pursue other options like offers in compromise.

If your HAP accommodation was ending soon when the program shut down, you should have received communication from the SBA about the change and what your payment obligations will be going forward. If you haven’t received such communication and your concerned about what happens next, contact the COVID EIDL Servicing Center at COVIDEIDLServicing@sba.gov to clarify your status.

What Should I Do If I Can’t Afford My EIDL Payments Now That HAP Is Gone?

If you were counting on HAP to help with your EIDL payments and just learned it’s no longer available, here’s what you should do:

Step 1: Determine if you qualify for the new short-term payment assistance. Check whether you meet the requirements: temporary (not permanent) financial difficulty, business viability, and never having been enrolled in HAP before. If you qualify, apply through the MySBA Loan Portal immediately. While this new program isn’t as generous as HAP, a 50% payment reduction for six months is still meaningful relief if you’re experiencing temporary cash flow problems.

Step 2: If you don’t qualify for short-term assistance, contact the SBA immediately. Don’t just stop making payments and hope for the . Contact COVIDEIDLServicing@sba.gov and explain your situation: you were hoping to use HAP but just learned it’s ended, you can’t afford the full payments, and you want to discuss options. The SBA might offer alternatives like extended repayment terms or temporary deferment depending on your circumstances.

Step 3: Evaluate whether an offer in compromise makes sense. If your financial problems are long-term or permanent (your business has failed or isn’t generating sufficient income), an OIC might be more appropriate than trying to continue making payments you can’t afford. An OIC lets you settle the debt for less, but it requires demonstrating that you genuinely lack the assets and income to repay the full amount, and typically requires closing your business and liquidating assets.

Step 4: Continue making whatever payments you can. Even if you can’t make the full payment, making partial payments demonstrates good faith. The SBA views borrowers who make partial payments while trying to work out accommodations much more favorably than borrowers who stop paying entirely with no communication.

Step 5: Consult with an attorney if your situation is complex. If you owe a large amount, if your facing potential default and collection actions, or if you’re not sure what the strategy is, an attorney experienced in SBA debt resolution can evaluate your options and help you navigate the process. The end of HAP has left many borrowers uncertain about how to proceed, and professional guidance can prevent costly mistakes.

Will the SBA Bring Back HAP or Create a New Similar Program?

There’s no indication that the SBA plans to bring back HAP or create a substantially similar program in the near future. The decision to end HAP appears to reflect a policy shift away from generous pandemic-era forbearance toward expecting borrowers to repay under standard terms or to use existing remedies like offers in compromise if they genuinely can’t repay.

However, the SBA does periodically adjust its policies and programs in response to borrower needs, economic conditions, and Congressional direction. It’s possible that if large numbers of EIDL borrowers face financial distress and current alternatives prove inadequate, the SBA could introduce new forbearance options. But as of now, borrowers should plan based on what currently exists—short-term payment assistance for those who qualify, and standard repayment or settlement options for those who don’t.

One thing to watch: Congressional action. If Congress determines that EIDL borrowers need additional relief, they could direct the SBA to offer new accommodation programs or could even pass legislation providing debt forgiveness (though EIDL forgiveness has never happened and seems unlikely given the political and fiscal environment). But this would require legislative action, not just SBA policy changes, and there’s no indication such legislation is being considered.

What If I Heard About HAP From an Older Article and Applied, Only to Be Rejected?

This is a common situation right now. There are numerous articles, videos, and social media posts from 2022-2024 describing HAP and encouraging borrowers to apply. Borrowers find these resources, follow the guidance, submit applications through the MySBA Loan Portal, and then receive rejections or no response. They’re confused about why there application was rejected when the information they found said they were eligible.

The answer is simple: the information is outdated. HAP existed when those articles were written, but it doesn’t exist anymore. The MySBA Loan Portal might still show a HAP application option (systems don’t always get updated immediately when programs end), but applications aren’t being approved because the program is closed.

If this happened to you: Don’t waste time trying to figure out why your HAP application was rejected or resubmitting it. Move on to the current options—apply for short-term payment assistance if you qualify, or contact the SBA about other accommodations. The time you’d spend fighting about HAP eligibility is better spent pursuing alternatives that actually exist.

This situation highlights the importance of getting current information about SBA programs. If you’re relying on an article or video from 2023, verify that the information is still accurate before acting on it. The SBA’s official website and direct communication with the servicing center are the most reliable sources for current program availability.

Talk to an SBA Debt Attorney Today

The end of the Hardship Accommodation Plan has left many EIDL borrowers uncertain about how to manage payments they can’t afford. While HAP is gone, there ARE still options for borrowers experiencing financial difficulties—but navigating those options requires understanding current SBA policies, qualifying for the right programs, and sometimes negotiating complex settlements or accommodations.

Our firm stays current on SBA programs and policies, including recent changes like the end of HAP. We help borrowers evaluate what current options they qualify for, negotiate offers in compromise when appropriate, obtain payment extensions or modifications, and protect borrowers from wrongful collection actions. We understand the transition from HAP to the current system and can advise on the strategy for your specific situation.

If you were counting on HAP to help with your EIDL payments and just learned it’s no longer available, don’t panic—contact us today for a free consultation. We’ll review your financial situation, explain what current programs you might qualify for, assess whether an offer in compromise makes sense, and advise on how to avoid default while working toward a solution. The consultation is free and confidential, but it could be the difference between finding workable relief and sliding into default and aggressive collection.

HAP might be gone, but options still exist. Call us now to explore them.