Navigating the Sale of Your Home with an SBA Lien
Discover essential steps and strategies for selling your home with an SBA lien. Learn how to navigate legal challenges and secure lender approval effectively.
Understand SBA loan defaults, repercussions, & pathways to navigate this complex scenario. Learn about resources like Protect Law Group for professional help.
Are you finding yourself wrestling with the complications of your Small Business Administration (SBA) loan agreement? Have you found yourself in a default status, grappling with the potential consequences this may have on your personal or business assets?
In the world of SBA loans, defaulting is one issue you don’t want to overlook. It occurs when you fail to meet your loan repayment obligations and can lead to severe repercussions that could jeopardize your financial health and the continuity of your business.
By navigating the complexities of SBA loan defaults, you’ll gain a better understanding of your situation and how to manage it. Plus, you’ll learn how you can benefit from the expert legal services offered by firms such as Protect Law Group, specializing in addressing and resolving SBA and Treasury debt issues.
Let’s delve into the intricate world of SBA loan defaults.
When you obtain an SBA loan, you establish an agreement with your lender to repay the loan within a certain timeframe. If you fail to make your loan payments, you enter a period of delinquency. If this delinquency remains long enough, your loan will default, and the SBA may seize the assets you placed as collateral.
But don’t panic just yet. The first thing you should do is understand the measures and options available to get you out of this tricky situation. Resources shared by organizations like Protect Law Group may assist in understanding your default status and in potentially resolving your SBA debt collection matter.
The intricate processes involved in SBA loans and debts need professional attention. This is where Protect Law Group shines. The firm is dedicated to representing small business owners and federal debtors across the U.S., specializing in a variety of legal services associated with SBA loans.
With the knowledgeable attorneys at Protect Law Group, you can expect to learn about your options and get assistance to create and implement an efficient plan to steer you out of your SBA loan complications.
The expert services of Protect Law Group encompass:
The professionals at Protect Law Group are fully capable of representing federal debtors nationwide at any needed governing body and provide you with the most current and relevant information on your case.
Protect Law Group excels in various areas concerning SBA loan defaults, including:
This enables your business to settle the SBA debt for a lesser amount than you owe.
A tailor-made agreement that enables you to repay your debt over a more extended period.
The attorneys at Protect Law Group can represent you in litigation happening at the SBA Office of Hearings and Appeals.
Protect Law Group negotiators can work with your lender to ensure you get the best possible terms for your repayment.
If sued by the SBA, Protect Law Group can help establish the best course of action.
Help prepping formal appeals for cross-servicing disputes with the Bureau of Fiscal Service should your debt be transferred.
By helping your business minimize SBA debt-related damage, you can avoid undesirable consequences such as bankruptcy or foreclosure.
With a consistent track record of delivering optimal web-carried services, Protect Law Group prides itself on providing:
Distinguished by well-educated attorneys and customer experience exceeding expectations, Protect Law Group stands out in its industry. It’s a reliable option for handling SBA debt problems, making it a valuable ally in managing difficult financial circumstances.
If you find yourself battling an SBA loan default, remember that you are not alone. Leverage the knowledge and assistance provided by experts in the field to protect your business and personal assets. Don’t let an SBA loan default hinder your business development. Reach out to Protect Law Group or a similar organization equipped to help you navigate and overcome this challenging situation.
An SBA loan default occurs when a borrower fails to meet the repayment obligations outlined in their loan agreement, leading to potential legal and financial consequences.
It’s crucial to understand your default status and explore available options to resolve the situation. Consulting with legal professionals experienced in SBA debt issues can provide guidance on the best course of action.
Protect Law Group specializes in representing small business owners and federal debtors, offering services such as SBA Offer in Compromise, structured workouts, administrative litigation, and negotiations to help resolve SBA debt-related matters.
An SBA OIC is a settlement agreement that allows a borrower to repay less than the full amount owed on their SBA loan, subject to approval based on the borrower’s financial situation.
A structured workout is a customized repayment plan that extends the loan term or modifies payment schedules to make debt repayment more manageable for the borrower.
Administrative litigation involves legal proceedings before the SBA Office of Hearings and Appeals, where borrowers can contest decisions or actions taken by the SBA regarding their loan.
Through negotiations, borrowers and lenders can reach mutually agreeable terms to modify loan conditions, potentially avoiding more severe consequences like asset seizure.
Cross-servicing disputes arise when multiple agencies are involved in debt collection, leading to complexities that require specialized legal assistance to navigate effectively.
Professional assistance provides expertise in navigating legal complexities, advocating for favorable terms, and ensuring compliance with all procedural requirements, thereby increasing the chances of a successful resolution.
You can reach out to Protect Law Group through their official website or contact information provided in the article to schedule a consultation and discuss your specific situation.
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 COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
Clients' 7(a) loan was referred to Treasury's Bureau of Fiscal Service for enforced collection in 2015. They not only personally guaranteed the loan, but also pledged their primary residence as additional collateral. One of the clients filed for Chapter 7 bankruptcy thinking that it would discharge the SBA 7(a) lien encumbering their home. They later discovered that they were mistakenly advised. The Firm was subsequently hired to review their case and defend against a series of collection actions. Eventually, we were able to negotiate a structured workout for $180,000 directly with the SBA, saving them approximately $250,000 (by reducing the default interest rate and removing Treasury's substantial collection fees) and from possible foreclosure.