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Consequences of an SBA Loan Default

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Consequences of an SBA Loan Default

Consequences of an sba loan default

Anytime you default on a loan, there are consequences, most of which are not the most favorable. Protect Law Group helps small business owners when they are unable to pay on their SBA loan and it enters into default. Below, we'll take a look at some of the consequences of an SBA loan default. Call our SBA lawyers for a free consultation today!

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You Could Lose Your Collateral

If you used collateral as any part of security for your SBA loan (this can be your home, car, or other business assets), the lender could seize these assets in order to sell and hope to recoup the money they lent to you.

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Others Could Lose Their Collateral

If anyone else co-signed on your SBA loan, then their assets could also be at risk. The lender has the right to take assets in order to recoup their losses from anyone who guaranteed the loan.

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The SBA or Your Lender Can Demand Repayment in Full

The lender can take their case to the SBA and ask them to issue a demand letter, which is basically a legal and a formal demand for repayment of your defaulted SBA Loan.

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The SBA or Your Lender Can Take Legal Action

The lender can take you to court and receive a judgment against you, giving them the right to take money from your bank account. They can also garnish your wages and your social security funds. In sum, they will take a fine tooth comb and analyze any and all business and personal assets you have in order to receive some compensation.

PARTNER WITH PROTECT LAW GROUP TODAY

Protect Law Group offers the top-rated SBA attorneys who will fight for you when your SBA loan enters default. With our years of experience and knowledge of the law, we are able to help our clients walk away with just settlements. Call our SBA debt resolution attorneys for a free consultation today!

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure

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Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements

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Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

Clients personally guaranteed SBA 7(a) loan balance of over $300,000.  Clients also pledged their homes as additional collateral.  SBA OIC accepted $87,000 with the full lien release against the home.

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 7(a) loan balance of over $150,000.  Business failed and eventually shut down.  SBA then pursued client for the balance.  We intervened and was able to present an SBA OIC that was accepted for $30,000.

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency.  After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.

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