If you are looking for SBA Form 3511 to request EIDL hardship relief, you are looking at the wrong form. Form 3511 is the Paycheck Protection Program Affiliation Worksheet, used to check whether a PPP borrower’s affiliates affected its size eligibility. It has nothing to do with COVID EIDL loans or payment relief. The Hardship Accommodation Plan that once served that purpose stopped accepting new enrollments on March 19, 2025. The relief option available now is a 50% payment reduction requested through the MySBA Loan Portal, and it never had a standalone numbered form.1U.S. Small Business Administration. Manage Your EIDL
Why Form 3511 Keeps Coming Up
SBA Form 3511 is titled “Paycheck Protection Program Affiliation Worksheet.” It was used to collect information from PPP borrowers who indicated they might have affiliated businesses, so the SBA could determine whether the borrower met PPP size standards. It does not apply to disaster loans, hardship accommodations, or payment reductions of any kind. If you downloaded it while searching for EIDL relief, set it aside. You do not need to fill anything out on it.
The Current EIDL Payment Relief Option
With the Hardship Accommodation Plan closed to new borrowers, the SBA’s remaining structured relief for COVID EIDL is a 50% payment reduction for six months. You can use it once every five years.1U.S. Small Business Administration. Manage Your EIDL
Three conditions have to be met:
- Your loan must be less than 90 days past due. If you have fallen further behind, this program is closed to you.
- The loan cannot be in Charged Off status. Loans the SBA has written off as losses are ineligible.
- You need to document the hardship. Explain the temporary financial difficulty or cash flow problem causing you to fall behind, and why you believe it is short-term.
You request the reduction through the MySBA Loan Portal. If approved, your payment drops to half of the normal installment for six months and then returns automatically to the full amount. Interest keeps accruing on the full outstanding balance the entire time.1U.S. Small Business Administration. Manage Your EIDL
What Happened to the Hardship Accommodation Plan
The Hardship Accommodation Plan let approved borrowers drop their monthly payment to roughly 10% of the normal installment, with a $25 floor, for a six-month period. Renewals typically stepped the payment back up to 50% or 75% of the regular amount.2U.S. Small Business Administration. Small Business Administration Announces Further Action to Help PPP and COVID EIDL Borrowers
New enrollments closed on March 19, 2025. Borrowers already enrolled continue under their existing plan until the current period expires, at which point full payments resume.1U.S. Small Business Administration. Manage Your EIDL If you are trying to enroll in HAP now, that door is closed. The 50% reduction is the substitute.
The Balloon Payment Behind Any Reduction
Every month you pay less than the full amount, interest still accrues on your outstanding balance. That unpaid interest does not disappear. It rolls forward, and the SBA expects it as a lump sum balloon payment when the loan matures at the end of its 30-year term.1U.S. Small Business Administration. Manage Your EIDL COVID EIDL carries a fixed rate of 3.75% for businesses and 2.75% for nonprofits.3U.S. Small Business Administration. About COVID-19 EIDL
A $150,000 EIDL at 3.75% accrues roughly $5,625 in interest per year on the original balance alone, and that compounds. A borrower who used the full 30-month initial deferment, then HAP, then the 50% reduction will owe a meaningfully larger balloon than the original principal suggests. Voluntary extra payments toward principal when cash flow allows are the most effective way to shrink that future obligation.
What Happens If You Wait Too Long
Delinquency escalates on a defined timeline, and once Treasury gets involved, reversing course is much harder.
At 120 days past due, the SBA can refer your loan to the Treasury Bureau of the Fiscal Service’s Offset Program, which intercepts federal payments you would otherwise receive, most commonly your annual tax refund.1U.S. Small Business Administration. Manage Your EIDL The Treasury Offset Program can also capture up to 15% of Social Security benefits.4Bureau of the Fiscal Service. Treasury Offset Program
Loans that stay delinquent get transferred to Treasury’s Cross-Servicing Program, which began processing referred COVID EIDL debts in September 2025. After referral, you receive a demand letter within about 21 days, and the program can pursue administrative wage garnishment of up to 15% of disposable pay per paycheck without a court order.5Bureau of the Fiscal Service. Cross-Servicing Contact Us
For loans over $200,000, which included a personal guarantee, the Department of Justice can eventually seek a judgment and place a lien on personal real estate, including a family home. That lien blocks any sale or refinance until the debt is resolved. The 90-days-past-due cutoff for the 50% reduction sits well before any of this begins, which is why acting early matters.
If the Business Has Already Closed
Closing your business does not eliminate your EIDL. The loan is tied to you as a borrower, not solely to the business entity. If the business has been legally dissolved, the SBA still expects communication and, where applicable, repayment. If the loan carried a personal guarantee, that guarantee survives the closure, and the SBA or Treasury can pursue the individual guarantor for the remaining balance.
Contact the COVID EIDL Servicing Center at COVIDEIDLServicing@sba.gov or send a secure message through the MySBA Loan Portal.1U.S. Small Business Administration. Manage Your EIDL Expect to provide dissolution paperwork or final tax returns. If your loan has already been referred to Treasury’s Cross-Servicing Program, follow the payment instructions in the demand letter you received from the Bureau of the Fiscal Service rather than contacting the SBA.