If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

Strategies For Negotiating A Resolution At The Hearing

Learn strategies to effectively negotiate a resolution at SBA debt hearings. Prepare, leverage legal expertise, and explore alternatives for a favorable outcome.

Schedule a Consultation

Have you been summoned for a hearing where your financial future may be at stake? If you’re dealing with SBA (Small Business Administration) debt issues, understanding and preparing effective strategies for Negotiating a resolution at the hearing becomes paramount. At this critical juncture, being well-prepared can make a significant difference in the outcome you achieve. This article delves into the sophisticated strategies that can be employed during such hearings to negotiate resolutions effectively, ensuring that you can safeguard your business and personal assets.

Understanding the Context of the Hearing

A hearing concerning debt issues such as those related to SBA loans is not just a formality; it is a crucial opportunity to present your case and negotiate terms that could significantly impact your financial situation. Understanding the context within which these hearings occur is essential for crafting an effective negotiation strategy.

The hearing is often scheduled when there has been a default or some disagreement over loan terms. It involves presenting evidence and arguments to an impartial arbiter or panel. Your objective is to convince this body of your proposed resolution’s merits or negotiate better terms. Given the complexity and stakes involved, having the guidance of experienced attorneys can be invaluable.

Core Strategies for Negotiating a Resolution

1. Preparation and Research

The first step towards a successful negotiation is thorough preparation and research. Investigate the specific circumstances leading to the hearing, including any past communications with the SBA or lenders. Understand your financial status comprehensively and be prepared to present and back up your claims with concrete evidence.

Preparation also entails familiarizing yourself with applicable laws and regulations that pertain to your case. This knowledge serves as the foundation for constructing a valid legal argument that can withstand scrutiny. Attorneys like those from the Protect Law Group can assist in reviewing and applying legal authorities to support your position.

2. Crafting a Persuasive Argument

Crafting a well-organized and compelling narrative is crucial. This involves clearly outlining your situation, the challenges faced, and the proposed resolution. Your argument should be structured logically, with each point building upon the last. Utilize data and real-world examples to substantiate your claims.

When crafting your argument, anticipate potential counterarguments from the opposing party and preemptively address these in your presentation. Lawyers skilled in negotiation, like those at Protect Law Group, are adept at foreseeing and neutralizing opposing arguments.

3. Leveraging Legal Expertise

Leveraging the expertise of specialized legal professionals can significantly enhance your negotiation strategy. Experienced attorneys bring a wealth of knowledge and proven strategies to the table. They can assist in diagnosing case issues, educating you about viable options, and developing a tailored plan designed to secure a favorable outcome.

Consider engaging legal experts who have a track record of successful negotiations and a deep understanding of the nuances involved in SBA-related disputes. Their experience can offer peace of mind and bolster your confidence during the hearing.

4. Exploring Alternative Resolutions

Often, there may be more than one way to resolve the dispute. Exploring alternative resolutions such as SBA Offers in Compromise or Structured Workout programs can lead to mutually beneficial outcomes. In an SBA Offer in Compromise, for example, you may propose to settle the debt for less than the owed amount, providing the lender an opportunity to recover part of the loan.

Examining the feasibility of alternative resolutions with the help of professional negotiators can uncover solutions that might not be immediately apparent. Protect Law Group specializes in identifying and executing such alternatives to mitigate damage to your business.

Navigating Specific Legal Processes

SBA Offer in Compromise (OIC)

An SBA Offer in Compromise allows eligible businesses to settle their debt for a reduced amount. Successfully leveraging this option requires demonstrating to the SBA that the compromise is in their best interest. This involves providing a comprehensive financial disclosure and a reasonable offer.

Structured Workout

A Structured Workout offers an extended repayment period, easing immediate financial burdens. Negotiating such arrangements requires demonstrating an ability to meet adjusted payment terms reliably. This can involve presenting detailed cash flow projections and business plans.

Administrative Litigation

Should negotiations not yield desired results, it may become necessary to engage in administrative litigation before the SBA Office of Hearings and Appeals. This step involves a formal challenge to decisions made by the SBA and necessitates the presentation of substantive legal arguments.

Expert legal representation is critical here, as Protect Law Group can attest. Attorneys skilled in litigation will investigate factual, procedural, and legal errors to strengthen your case and enhance the likelihood of a favorable ruling.

Tips for Successful Negotiation

  • Communication is Key: Ensure clear, open lines of communication with involved parties. Misunderstandings can derail negotiations.
  • Stay Composed: Emotions can run high during these proceedings. Maintain professionalism and focus on objective facts.
  • Be Willing to Compromise: Flexibility can lead to better terms. Be prepared to make concessions in exchange for favorable outcomes.
  • Focus on Long-Term Impacts: Evaluate how the negotiated terms will affect your business and personal finances in the long run. Avoid short-term solutions that may lead to future issues.
  • Utilize Technology: Make use of technology for organizing documents and presenting your case efficiently. This includes using data visualization tools to enhance understanding.

Conclusion

Negotiating a resolution at a hearing requires a blend of legal knowledge, negotiation skills, and strategic planning. By understanding the intricacies of SBA-related hearings and employing expert legal support, you can increase your chances of a favorable resolution. Remember, the goal is to achieve an outcome that minimizes the adverse effects on your business while ensuring compliance with legal requirements.

Whether exploring options like an Offer in Compromise or engaging in structured workouts, being proactive and prepared is key. When facing high-stakes negotiations, consider enlisting the help of seasoned professionals like those at Protect Law Group. Their expertise may provide not only a favorable outcome but peace of mind during a challenging time.

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

The client personally guaranteed an SBA 504 loan balance of $375,000.  Debt had been cross-referred to the Treasury at the time we got involved with the case.  We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.

‍

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

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.

‍

‍

$150,000 SBA COVID EIDL - OFFER IN COMPROMISE & RELEASE OF COLLATERAL

$150,000 SBA COVID EIDL - OFFER IN COMPROMISE & RELEASE OF COLLATERAL

Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) f borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.

Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.

This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.

‍

Read more Case Results
Providing real solutions to individuals who are facing SBA loan problems. Contact one of our experienced SBA Attorneys and Federal Agency Practitioners today for a Case Evaluation - (833) 428-0937.
©2021 Protect Law Group, All Rights Reserved.Design by T. Walker Consulting, Inc.