Identifying Misrepresentations Or Errors In The Notice
Learn to identify misrepresentations or errors in legal notices affecting SBA and Treasury debts. Protect your rights with expert strategies and professional guidance.
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.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
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.