Small business owners could acquire assistance through local attorneys. This assistance could prevent them from suffering through financial ruin. It presents them with the opportunity to gain an SBA Offer in Compromise. These options could eliminate the possibility of seizure and foreclosure.
An SBA loan default occurs when the borrower is more than ninety days delinquent on their loan. After the loan is in default, the lender has the right to begin the seizure of the identified collateral. The collateral is any property or assets used to secure the loan. It is primarily the building or machinery that was purchased through the funds provided by the loan.
A default could also lower the borrower's credit score. This could make it difficult for the company to acquire new lines of credit. It could make it impossible for them to acquire a low-interest loan for business purposes.
Once the borrower acquires the SBA demand letter, they must take immediate action. Any failure to take action could lead to negative legal action. This could include the foreclosure of the property or a lawsuit to collect the full balance of the loan.
The borrower should contact an attorney to evaluate their options. The attorney could determine if an SBA offer of compromise is possible. This opportunity could allow the borrower to pay a small value without suffering the negative consequences of default.
An SBA loan foreclosure could lead to the end of the company. If the business owner loses their property through foreclosure, it is not likely that they will receive another loan. This could prevent them from reopening their doors after the settlement offer is accepted.
Local small business owners need help reducing the negative impact of a default. An attorney helps them with these opportunities by determining if an SBA offer in compromise is available to them. This opportunity could reduce the full value of the loan and make it more affordable. Business owners who wish to enter into a Tax Offset Program or acquire an offer in compromise should contact an attorney now.
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.
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.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
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