If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

SBA Debt Resolution Attorneys

We Provide Nationwide Representation of Small Business Owners, Personal Guarantors, and Federal Debtors with More Than $30,000 in Debt before the SBA and Treasury Department's Bureau of Fiscal Service

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SBA Debt Attorneys

Owe more than $30,000? If yes, we can provide you realistic solutions to SBA loan problems and US Treasury Debt Collection Tactics.

Would you like to know more about your SBA loan problem?

The SBA Attorneys in our office want to help you resolve your SBA debt situation. No matter how difficult your circumstances may seem, the right SBA debt attorneys can assist you.

We understand that you may have questions regarding a wide range of federal agency matters, including how to respond to an SBA demand letter, what SBA loan foreclosure actually entails, and what is a Treasury Offset Program levy.

Our SBA Attorneys can explain all of these topics and more. We urge you to review our disclaimer and blog to learn more about subjects that may be confusing to you and to contact us right away if you have specific questions relating to your unique circumstances.

We look forward to helping you during this difficult and stressful period of your life.

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.

SBA Settlement: COVID-19 EIDL Resolved with Collateral Release

SBA Settlement: COVID-19 EIDL Resolved with Collateral Release

SBA Settlement: COVID-19 EIDL Resolved with Collateral Release

Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.

As part of the business closure review, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability.

This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA offer in compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

Client personally guaranteed an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.

We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.

SBA Settlement: COVID-19 EIDL Resolved with Minimal Payment

SBA Settlement: COVID-19 EIDL Resolved with Minimal Payment

Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) for Train With Jodi Inc. The borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.

Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability.

This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA offer in compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.

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SBA Debt Default FAQs
Do I Need To Hire An Attorney To Represent Me Before The SBA?
Do I Need To Hire An Attorney To Represent Me Before The SBA?

Yes. The Agency Practice Act (5 U.S. Code Section 500 et seq.) specifically authorizes attorneys in good standing of the bar of the highest court of their State to represent you before the U.S. Small Business Administration, the U.S. Department of Treasury and the Bureau of Fiscal Service. However, if you decide to hire a non-attorney firm or consultant to handle your SBA matter before the aforesaid federal agencies, be advised that this non-attorney firm or consultant are in violation of the Federal Agency Practice Act, and cannot advise you on any legal issues. The problem we have with non-attorney representation for SBA matters in this industry is that we do not believe these non-attorneys have the legal authorization and ability to advise or counsel you on any interpretation of SBA administrative law (such as the SBA’s SOPs, the Code of Federal Regulations (CFRs), SBA OHA decisions, bankruptcy issues, federal/state statutory law or federal case law). In addition, many of these non-attorney representatives are neither affiliate members of NADCO, NAGGL (SBA trade associations) nor authorized to practice before the Department of Treasury pursuant to the Agency Practice Act and Circular 230. Finally, in the event that you need to appeal your case to the SBA Office of Hearings and Appeals in connection with your SBA debt or any adverse decision that may be considered an abuse of discretion, the non-attorney representatives will NOT be able to cite to legal precedent or argue applicable law before the SBA’s Administrative Law Judge (ALJ) as any attempt on their part would arguably be the unauthorized practice of law, and would be useless since these non-attorneys wouldn’t have any clue as to how to proceed with representing your interests in this special forum as these individuals do not have the education, training or experience to administratively litigate your case and protect your interests.

What Are "Litigative Risks" And How Do They Factor Into An SBA OIC?
What Are "Litigative Risks" And How Do They Factor Into An SBA OIC?

SOP 50 51 2A, Ch. 17, 8-12 states that “[a]ny settlement amount must bear a reasonable relationship to the present value of the estimated amount of recovery available through foreclosure (using a forced sale equivalent value) and enforced collection. This value, combined with the earning potential of the debtor, will form the basis for the offer in compromise.“ Litigative risks” involve answering  certain legal questions as to the actual liability of the debtor and will be thoroughly explored by the SBA, if raised properly. The degree of doubt coupled with the potential costs, expenses and time involved in pursuing collection matters will generally determine the acceptable amount for a settlement. Thus, when considering an SBA OIC, it is very important for your qualified representative (who should have a background in litigation and thus be an attorney and have a working knowledge of SBA matters) to be able to advise SBA debtors regarding litigative risks and the costs associated with litigation and how all of these factors can impact the proposed offer to the Federal Government.

Does The Compromise With One Or More Obligor Release The Liability Of The Remaining Obligors?
Does The Compromise With One Or More Obligor Release The Liability Of The Remaining Obligors?

A compromise with one or more Obligors does not release the continuing liability of any remaining Obligors. Each entity or individual responsible for the debt must develop its/his/her own SBA OIC.

What Happens If A Borrower Or Guarantor Refuses To Cooperate?
What Happens If A Borrower Or Guarantor Refuses To Cooperate?

If a Borrower or Obligor does not respond to the opportunity to submit an Offer in Compromise, they may be referred to the U.S. Department of Treasury for various enforced collection activities.

What is a Chapter 11 Subchapter V Bankruptcy?
What is a Chapter 11 Subchapter V Bankruptcy?

Chapter 11 of the US bankruptcy code focuses on “reorganizing” a business. This allows it to stay alive while restructuring debt and making a plan to repay creditors over time.

For many struggling businesses, the Chapter 11 Subchapter V is a long-awaited life preserver. A traditional Chapter 11 was extremely expensive for businesses. Businesses hope it eliminates some of the bureaucratic pitfalls of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

The BAPCPA was supposed to make filing for Chapter 11 easier. Instead, it included more reporting requirements and other burdens that bogged down the act and canceled out the benefits.

Subchapter V shares some similarities to the BAPCPA. Both have one-step confirmation, and both add new features that make filing for Chapter 11 easier for small businesses.

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