If you Owe more than $30,000 contact us for a free case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
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SBA Loan Deferment and Modification

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SBA Loan Deferment and Modification Attorneys

An SBA Loan Deferment is a temporary remedial option. If your small business is having short term financial difficulty because of a seasonal slump and can prove through pro forma financial statements to the SBA lender of record or the Certified Development Corporation (CDC) that a turnaround is just around the corner and you need a temporary reprieve from paying on the SBA loan, you should consider applying for a deferment. Generally, if you qualify, the SBA lender or CDC, with the SBA’s approval can provide you with either a three (3), six (6), nine (9) or twelve (12) month reprieve from paying either the principal amount (and allow interest-only payments) or no principal and interest. However, if you consider this option, be advised that you may be asked to reaffirm the loan with personal guarantees or even pledge additional collateral. Needless to say, this is not an option that you should consider without either representation or consultation with a qualified SBA Attorney.

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An SBA Loan Modification is a remedial option when the small business is still a viable concern, is still generating revenue but due to current circumstances, the old loan terms no longer make financial sense for all parties involved. A loan modification package is generally presented when it involves an SBA 504 Loan and the pledged collateral or building’s fair market value has decreased significantly such that the loan should be modified (i.e. principal and interest payment terms, modification of principal loan balance to reflect current fair market value appraisal of real estate collateral, payment schedule etc.). In this situation, special factors need to be evaluated, formal appraisals will need to be conducted, and a proposal should be made in order to apply for a loan modification which can benefit both parties. Again, the borrower will be required to provide updated business and personal financial information, additional pledged collateral may be requested, and formal appraisals will be done as part of the modification process. This is not a situation where the borrower or guarantor should engage in this process without qualified representation or consultation. However, if the small business feels that it doesn’t need assistance, we recommend that you review applicable SBA SOPs and the Code of Federal Regulations (CFRs) prior to presenting your loan modification application.

Contact us today for a free Case Evaluation.

An SBA Loan Modification is a remedial option when the small business is still a viable concern, is still generating revenue but due to current circumstances, the old loan terms no longer make financial sense for all parties involved. A loan modification package is generally presented when it involves an SBA 504 Loan and the pledged collateral or building’s fair market value has decreased significantly such that the loan should be modified (i.e. principal and interest payment terms, modification of principal loan balance to reflect current fair market value appraisal of real estate collateral, payment schedule etc.). In this situation, special factors need to be evaluated, formal appraisals will need to be conducted, and a proposal should be made in order to apply for a loan modification which can benefit both parties. Again, the borrower will be required to provide updated business and personal financial information, additional pledged collateral may be requested, and formal appraisals will be done as part of the modification process. This is not a situation where the borrower or guarantor should engage in this process without qualified representation or consultation. However, if the small business feels that it doesn’t need assistance, we recommend that you review applicable SBA SOPs and the Code of Federal Regulations (CFRs) prior to presenting your loan modification application.

Contact us today for a free Case Evaluation.

SBA Loan Deferment and Modification
$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection.  Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest.  We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.

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

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

Client personally guaranteed SBA 504 loan balance of $375,000.  Debt had been cross-referred to 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.

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