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The 60 Day Referral Letter to the Department of the Treasury

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If you have a SBA loan default problem and you're working with your lender to wind down the business and settle the deficiency with an SBA Offer In Compromise (SBA OIC), time is of the essence. Lenders, banks, the CDC and the SBA generally do not wait much longer than 60-90 days after the defaulted borrower has been liquidated or shut down to tender an SBA OIC for consideration which, if accepted, could potentially release the guarantors from the deficiency for a lesser amount.

As part of the process, the bank, the lender, CDC or SBA should send you what is called the “60 day letter - click here to view: Sample 60 Day Referral Letter" where you'll be given only 60 days from the date of the letter to file an SBA OIC Package for SBA consideration.  Certified-Mail-LetterIf you fail to timely submit an SBA OIC Package within the administrative time frame as noted in the letter you received, the bank or SBA will probably submit the file to the United States Department of Treasury for enforced collection, and thus, you will probably lose your one (1) time opportunity to settle for less than what is purportedly owed on the SBA loan debt through this special administrative process.

The United States Treasury Department rarely collects on these bad loans directly – rather they hire third party collection agencies to handle them. These collection agencies don’t know anything about the history behind the loans – their job is to be ruthless in their collection efforts as they generally receive a generous percent of the collected amount or actually bought the so-called junk federal debt for pennies on the dollar.

Several of these federally approved third party collection agencies or junk debt buyers are particularly nasty, and rarely settle for less than 50% of the outstanding amount as the incentives for collection, litigation and judgment pursuit are very high. Contrast that with the results that we have reviewed and settled and it’s easy to see the importance of addressing your outstanding SBA loan debt sooner rather than later, whether you’re working with a non-attorney consultant, an SBA Workout Attorney or United States Treasury Department Circular 230 Practitioner, or attempting to do it yourself. If you think your banker is nasty or difficult to work with, you don’t want to experience the tactics of these collection agencies or junk debt buyers.

If you have an SBA loan default problem and received the 60 day referral letter to the Treasury Department, call us at 888-756-9969 to speak to one of our SBA Workout Attorneys and figure out your options.  It's a complimentary Case Evaluation, or, simply complete form to see if you pre-qualify for an SBA OIC.

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We are here to help you with your SBA loan problems.

If you owe more than $30,000, call our experienced attorneys at (888) 303-6975 anytime for a Free Case Evaluation