Posts by SBA Attorneys

What is Loss Mitigation? It is generally defined as the process an SBA lender or CDC goes through to work with a small business borrower or obligor who is behind on loan payments, to create a workable solution, typically resulting in either a loan modification, structured workout or the sale of assets pledged as collateral…

For the 3 fiscal years preceding the COVID-19 pandemic, U.S. banks underwrote approximately $75 billion in loans through the SBA’s flagship 7(a) loan program to small businesses. Although the SBA has authorized guarantees up to a certain portion of these loans – somewhere in the ballpark of $25 billion – should small businesses ultimately default…

According to various news reports, it has been discovered that the U.S. Treasury Department has been withholding millions of dollars from first responders treated by the FDNY World Trade Center Health Program through the Treasury Offset Program On the 19th anniversary of the September 11, 2001 terrorist attacks, since two hijacked planes collided with the…

FAILED SMALL BUSINESSES & LIABILITY FOR SBA PPP LOANS While the U.S. transitions from summer to fall in the wake of the Presidential Election on November 3, 2020 against the backdrop of surging COVID-19 cases, it is very possible that a good chunk of small businesses will eventually close their doors despite having received federal…

The SBA Office of Inspector General (OIG) recently issued an Alert regarding SBA EIDL Loans and the potential warning signs involving COVID-19 fraud and abuse.  This video article is an exact reproduction of the SBA OIG’s Notice of Alert that was published on 7/14/2020. Lender Alert: Economic Injury Disaster Loans The Small Business Administration’s (SBA’s)…

Are Treasury’s Collection Fees Unreasonable? When a federal non-tax debt (SBA, HUD, Department of Education or DFAS) is transferred to the U.S Treasury Department’s Bureau of Fiscal Service for collection, the agency automatically adds collection fees up to 32% of the principal amount originally claimed.  Let’s say you defaulted on an SBA loan in the…

What to expect when you default on your SBA loan? Failure to Pay: Material Default Small business owners face unprecedented times in this covid-19 economy.  Many businesses have 2 major expenses to service every month: (1) SBA loan and (2) Commercial lease. A material default occurs when the small business is not able to pay…

SBA Help for Coronavirus Outbreak:  SBA Programs Available for Small Businesses as Domino Effect Begins to Unfold within the Next 4-8 Weeks Unfortunately, the Coronavirus (aka COVID-19) has breached our borders so prevention is no longer a viable remedy. Travel blockades and restrictions will not be effective.  Now that the virus is in the U.S.,…

Engaging in fraud may trigger an investigation by the SBA Office of Inspector General and U.S. Department of Justice One of the most concerning factors an SBA debtor needs to be wary of is submitting a “false statement” or making a material “omission” in documents submitted to the SBA.  Many problems can occur if false…