At 120 days of delinquency, the account is referred to U.S. Department of the Treasury Offset Program (TOP). The Treasury uses the Treasury Offset Program (TOP) to collect debts from various sources, including federal payments such as income tax refunds, Social Security benefits, and retirement benefits.
When a person owes a debt and is due a federal payment, TOP matches the information and reduces the payment to cover the debt. If the COVID Economic Injury Disaster Loan (EIDL) delinquency reaches 180 days or more, the loan is eligible to be transferred to the U.S. Department of Treasury's Cross-Servicing program and the loan will no longer be serviced by the Small Business Administration (SBA).
Please note that the specific timeframes for referral to U.S. Department of the Treasury may vary in accordance with SBA policies.