The 2026 midterm elections and small business finances are closely connected for owners wondering what a new Congress might change. For businesses struggling with COVID EIDL debt, the useful distinction is between a shift in political priorities and an actual change in the rules governing their loans.
The Associated Press reports that Democrats have won control of both the House and Senate. That changes the congressional landscape for the remaining two years of President Trump’s term. It does not, by itself, establish a new EIDL repayment or relief policy. 1, 2, 3
A new congressional majority can change which issues receive hearings, oversight and attention in funding negotiations. PwC’s post-election analysis anticipates greater congressional scrutiny and continued uncertainty, while noting that major legislation would still face the president’s veto power. 2
For small business owners in financial distress, the issues worth watching include operating costs, access to financing and any concrete proposals addressing existing federal business debt. These are areas to monitor, rather than outcomes borrowers can assume will occur.
Lower operating costs or improved access to capital could help some businesses manage cash flow. Whether those improvements happen, how quickly they arrive and which businesses benefit remain open questions. A political shift alone does not tell an owner whether their next loan payment is affordable.
The SBA currently publishes COVID EIDL payment-assistance requirements and instructions for servicing requests. Those published requirements are the starting point for evaluating available help. Eligibility depends on the borrower’s circumstances; owners should confirm current requirements directly with the agency.
For more background on managing repayment, see our guide on how to pay back an SBA loan.
Borrowers should also establish who is handling their account. SBA distinguishes Treasury’s Offset Program from Treasury cross-servicing. Its guidance states that loans transferred to cross-servicing are no longer serviced by SBA. A borrower’s account status therefore matters when deciding whom to contact.
For an owner considering closure, the SBA provides a specific instruction to contact its COVID EIDL Servicing Center or send a message through the loan portal for guidance on anticipated closure or liquidation. That is a separate issue from the broader political debate about small business policy. 3
Start with current records: the loan balance, payment history, account status and any notices received. Note response dates and confirm the agency or servicer identified in the correspondence. Use a current cash-flow forecast to understand whether the problem is a temporary shortfall or an ongoing inability to support the business’s obligations.
If you have received a collection notice, our guide to what to verify in a COVID EIDL collection letter can help you identify the details to review before responding.
Evaluate available options using the rules that apply today. As new proposals emerge, look for official confirmation of any changes, including when they take effect and which borrowers qualify. These details will help you determine whether a policy change applies to your situation. 4
For owners weighing continued operations, restructuring or closure, the next step should reflect the business’s finances and its actual loan circumstances. Potential policy changes deserve attention, but they cannot substitute for an assessment of the situation the owner faces now.
If you are struggling with COVID EIDL debt, EiDLexit offers a free consultation to discuss your circumstances and potential next steps.
Sources:
1 Associated Press election reporting
2 PwC post election business analysis
3 SBA COVID era programs and current servicing guidance
4 US House of Representatives legislative process