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Discover the complexities of SBA and Treasury debt resolution with expert legal counsel. Learn how strategic legal assistance can enhance outcomes and safeguard interests.
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 negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
Client’s small business obtained an SBA 7(a) loan for $150,000. He and his wife signed personal guarantees and pledged their home as collateral. The SBA loan went into default, the term or maturity date was accelerated and demand for payment of the entire amount claimed was made. The SBA lender’s note gave it the right to adjust the default interest rate from 7.25% to 18% per annum. The business filed for Chapter 11 bankruptcy but was dismissed after 3 years due to its inability to continue with payments under the plan. Clients wanted to file for Chapter 7 bankruptcy, which would have been a mistake as their home had significant equity to repay the SBA loan balance in full as the Trustee would likely seize and sell the home to repay the secured and unsecured creditors. However, the SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection to the SBA. Clients then received the SBA Official 60-Day Notice and hired the Firm to respond to it and negotiate on their behalf. Clients disputed the SBA’s alleged balance of $148,000, as several payments made to the SBA lender during the Chapter 11 reorganization were not accounted for. To challenge the SBA’s claimed debt balance, the Firm Attorneys initiated expedited discovery to obtain government records. SBA records disclosed the true amount owed was about $97,000. Moreover, because the Clients’ home had significant equity, they were not eligible for an Offer in Compromise or an immediate Release of Lien for Consideration, despite being incorrectly advised by non-attorney consulting companies that they were. Instead, our Firm Attorneys recommended a Workout of $97,000 spread over a lengthy term and a waiver of the applicable interest rate making the monthly payment affordable. After back and forth negotiations, SBA approved the Workout proposal, thereby saving the home from imminent foreclosure and reducing the Clients' liability by nearly $81,000 in incorrect principal balance, accrued interest, and statutory collection fees.
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.