The Three Elements of an Effective SBA Offer in Compromise Strategy
You don't have to deal with your SBA debt alone. The following is a guide for an effective SBA offer in compromise strategy.
Are you straining with your SBA loan repayment and you are opting to defer the loan. Read this article to know how you can get an SBA loan deferment.
Book a Consultation CallAre you struggling to pay your SBA loan? Are you unsure about what to do next?
If you're facing this dilemma, you're not alone. Half of all small businesses struggle financially and often fold in the first five years.
But it doesn't have to be this way. A simple loan deferment could help you get back on track and save your business.
Here's what you need to know about an SBA loan deferment.
Accumulating too much debt early on can be a huge problem for a small business. Falling into debt you can't pay can lead to mountains of interest that only compounds the problem.
When you're on the verge of losing your business, it's scary. You may be tempted to file bankruptcy to end the debt and the worrying.
However, you should avoid bankruptcy if at all possible. Declaring bankruptcy often doesn't make sense for a small business and will make it hard to get any future business loans.
Before you choose bankruptcy, you should know there are debt relief options that can help you manage your debt and keep your business running.
The current pandemic has affected small business owners everywhere. Although some small businesses were able to rebound quickly, others have struggled.
Although private financial institutions provide SBA loans, they are backed by the Federal government through the SBA. This means SBA loans are secure loans that require collateral.
If you default, the lender has a right to recover what you owe. That could put your collateral, including your primary residence, business assets, car, etc. at risk.
Eliminating your small business debt is crucial for getting your business moving in the right direction. You need financial relief so you can focus on running your business.
An experienced SBA debt attorney understands the stress you may be dealing with right now. They know that eliminating your debt is the first step toward financial freedom.
An SBA attorney may be able to negotiate for a sizable reduction in your small business debt, including a reduction in principal. For many business owners, a more manageable debt makes all the difference.
With the right guidance, you may be able to avoid bankruptcy and eliminate or greatly reduce your debt.
The role of an SBA attorney is to help you restructure your business debt and get the relief you need so you can focus on running your business. It's important to have a professional guiding you through this process.
Many debt relief companies claim they can help you resolve your debt problems but are unable to fulfill this promise. Having an experienced SBA attorney working for you ensures you have the best chance for debt relief.
A skilled negotiator knows how to deal with creditors, work to protect your rights, and get the best deal possible for you. Your SBA attorney will keep all your financial dealings confidential.
This ensures that your financial issues will remain private and will not disrupt your company's reputation.
Your attorney will work with your creditors to negotiate a lesser debt on your behalf. Creditors are more likely to offer a better deal when you have an attorney representing you.
An SBA attorney is familiar with collection laws and what a creditor can and cannot do when attempting to collect a debt. They will communicate directly with your creditors and will instruct them to stop contacting you.
If you are facing an SBA loan default, don't settle for bankruptcy.
Instead, hire a reputable SBA attorney to help you with the process of SBA debt settlement.
Before any litigation occurs, it's possible to enter into settlement negotiations with your lender for a deferment or other workout of the loan. A deferment provides you with some breathing room and enables you to get your business on the right track before paying your monthly loan commitment.
The terms of a deferment can vary as will the "catch up" provisions.
Every case is different. It's in your best interest to have an SBA attorney by your side every step of the way.
When you're faced with an SBA loan default, the worst thing to do is bury your head in the sand. The sooner you begin seeking a loan deferment, the better.
The worst case scenario most often results in the lender filing a lawsuit.
For this reason, the sooner you address the problem and begin working with an SBA attorney, the better.
Don't wait until it's too late to save your business. Start the SBA loan deferment process right away.
The experienced legal team of Protect Law Group provides real solutions for individuals facing SBA loan problems. We're here to help. Contact us today for a case evaluation.
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
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
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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.
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