What You Need To Know About SBA Repayment Plans
Learn more about SBA debt relief programs and how Protect Law Group can help with SBA repayment plan negotiations. Get in touch with us today.
Contact Our SBA Attorneys for Nationwide Representation of SBA and Treasury Debt Problems
Book a Consultation CallIf you have recently received a written notice from the Department of Treasury demanding payment for an SBA loan default you may not know which way to turn. Not only has your SBA debt come back to haunt you but the amount is now up to 30% more than because the Department of Treasury has added oppressive “collection fees.”
You may feel a certain type of paralysis because the federal government is looking to collect more money than you will ever be able to pay back in your lifetime. The first step you need to take is perform a proper investigation and an analysis of your legal defenses, where applicable.
Neither the SBA nor the Department of Treasury needs to go to court and prove their case in front of a jury or judge like a private creditor when it pursues you through the federal agency system. You do not receive your “day in court” to argue your case when the federal government is your creditor. The SBA and Department of Treasury unilaterally decide that you owe the debt. They do not send you any documents that prove you owe the debt and the federal government certainly does not provide you documents that may exonerate you from liability. The SBA and the Treasury may have hundreds of pages of documents related to your case, which you have a right to inspect and review.
To get your day in court, so to speak, you have to figure out what evidence is available and the legal defenses you can assert. An SBA Attorney can conduct such an investigation and advise you of your options. Once you know your options, you can make an informed decision on how to dispute the claimed debt.
Before filing bankruptcy and ruining your credit or taking another path, you should consider having one of our SBA Attorneys to conduct a proper investigation of your federal debt and determine if there are better alternatives.
Contact us today for a Case Evaluation.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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