Overview Of The CARES Act And Its Purpose
Explore the impact of the CARES Act, a vital legislation providing relief to small businesses and individuals amid COVID-19. Learn about its key components and benefits.
Facing a notice from the SBA? Discover expert strategies to navigate legal, financial complexities to protect your business and resolve debts efficiently.
Have you ever received a notice and found yourself unsure about the best course of action to take? When dealing with legal and financial matters, especially those concerning government agencies like the Small Business Administration (SBA), it’s crucial to understand your options and make informed decisions.
Receiving a notice from the SBA or other federal agencies can be daunting. These notices may concern issues such as administrative offset, federal salary offset, or other financial actions that could impact your business’s stability. Protect Law Group specializes in navigating these complexities, offering guidance and strategies to manage and potentially resolve these issues. They provide expertise in dealing with all aspects of SBA loans and federal debt.
Understanding the types of notices you might receive is the first step in determining the appropriate response. These could include:
Each type of notice carries specific implications and requires different responses. Ensuring you understand the content and implications of these notices is vital.
When faced with these challenges, having a legal partner well-versed in these matters can be invaluable. Protect Law Group offers a suite of services designed to help you navigate the complexities of SBA loans and federal debt issues.
Protect Law Group’s services are tailored to provide you with multiple courses of action depending on the notice received. Key services include:
By leveraging these services, you can often find a path to resolving your debt issues that minimizes financial disruption.
Once you’ve received a notice, it’s important to have a clear strategy in place. Protect Law Group assists by helping to develop and implement strategies that are tailored to your specific situation.
Here are some immediate actions to consider when you receive a notice:
The focus should always be on addressing the notice promptly to prevent any escalation of actions that could adversely affect your finances.
A significant part of determining the best course of action involves understanding the legal landscape. The Agency Practice Act authorizes Protect Law Group attorneys to represent federal debtors nationwide, ensuring that you have experienced legal assistance available.
Legal complexities can arise when dealing with issues like cross-servicing disputes and procedural errors. Here is how Protect Law Group can assist:
These legal avenues can sometimes provide leverage to negotiate more favorable terms or even reverse the effects of a notice.
Negotiation is at the heart of many successful debt resolutions. Protect Law Group’s negotiators are skilled in working with the SBA and lenders to secure favorable agreements.
Negotiating a resolution can involve several strategies:
The ultimate goal of negotiation is to reach an agreement that minimizes financial harm while resolving the issue effectively.
Resolving debt issues effectively is not just about addressing the immediate notice but protecting your business assets and interests in the long term.
Here are steps you can take to protect your assets:
By focusing on these protective measures, you can ensure that your business remains viable and your personal assets are protected from adverse actions.
Determining the best course of action when you receive a notice can be complex and overwhelming. Whether it’s a federal salary offset or an administrative notice, understanding the potential impact and knowing your options are crucial. Protect Law Group offers the expertise and strategic guidance necessary to navigate these challenges. With their support, you can focus on resolving debts effectively and maintaining your business and financial well-being. Making informed decisions and taking timely action are essential steps in ensuring that you handle notices in a manner that aligns with your financial goals and legal obligations.
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 and audit, 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 for the owner/officer.
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.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
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.