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 and Federal Debt Articles

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 Articles

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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.

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture.  After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against our client’s monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars.  We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA).  As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy), but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.

$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 home as additional collateral.  SBA OIC accepted for $87,000 with full release of lien against home.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

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SBA FAQS
What Factors Are Considered As Part Of The Offer in Compromise Process?
What Factors Are Considered As Part Of The Offer in Compromise Process?

Each individual SBA OIC will be based on a case by case review of the Borrower’s or Guarantor’s individual financial situation and certain “litigative risks.” Factors that will be considered are:• An assessment of the debtor’s ability to pay and potential earnings capacity• Health and life expectancy• Local economic conditions• Equity in pledged or reachable assets• Settlement arrangements with other creditors• Applicable exemptions available to debtor under State and Federal law• The cost, time and risk of collection litigation

What is an SBA Loan Modification?
What is an SBA Loan Modification?

An SBA Loan Modification is a remedial option when the business is still a viable concern, is still generating revenue and due to current circumstances, the old loan terms just do not make financial sense for all parties. A loan modification package is generally presented when it involves a SBA 504 Loan and the collateral or building’s fair market value has decreased significantly such that the loan should probably be modified (i.e. principal and interest payment terms, modification of principal loan balance to reflect current fair market value appraisal of real estate collateral, payment schedule etc.). In this situation, special factors need to be evaluated, appraisals will need to be conducted, and a proposal should be made in order to apply for a loan modification which benefits both parties. Again, the borrower will be required to provide updated business and personal financial information, additional pledged collateral may be requested, and appraisals will be done as part of the modification process. This is not a situation where the borrower or guarantor should engage in this process without qualified representation or consultation. However, if the business feels that it doesn’t need assistance, we recommend that you review applicable SBA SOPs and the Code of Federal Regulations (CFRs) prior to presenting your loan modification application.

What If I Do Not Have The Cash To Make An OIC Settlement Offer At This Time?
What If I Do Not Have The Cash To Make An OIC Settlement Offer At This Time?

While the SBA prefers a cash settlement offer (i.e., lump sum payment or cash compromise) with an SBA OIC Package, a monthly installment payment plan not to exceed 5 years or 60 months (term compromise) may also be considered if necessary. If a term compromise is desired, the SBA may also require a lien on any worthwhile collateral that may be available to secure the agreed upon balance due.

How Can the SBA Go After My Personal Assets When My Business Is the Party To The Loan Agreement?
How Can the SBA Go After My Personal Assets When My Business Is the Party To The Loan Agreement?

Even if your business incorporated (i.e. corporation, Limited Liability Company), almost all lenders and the SBA required that you sign personal guarantees as part of the initial loan funding process. Therefore, despite the fact that your business entity signed on the Loan Agreement with the bank or CDC, you would still be liable as a result of the personal guaranty that you or any other individuals signed. The personal guaranty, upon default on the loan, gives the bank or CDC and the SBA direct access to your personal assets such as your home, personal bank accounts, investments, real estate, etc.

What is the Federal Statute of Limitations Act Applicable To An SBA Loan?
What is the Federal Statute of Limitations Act Applicable To An SBA Loan?

Under the Federal Statute of Limitations Act (28 U.S.C. 2415(a)), an action by the Government to recover upon a contract for money damages is barred unless filed within 6 years from the date the cause of action accrued. The date of the accrual of the cause of action may be subject to various interpretations. However, in the event of partial payment or written acknowledgement of the debt, the cause of action again accrues at the time of the partial payment or acknowledgement. 28 U.S.C.A. § 2415(a).

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