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

60 day referral letter to Department of Treasury

Book a Consultation Call

60 day referral letter to Department of Treasury

If you have a SBA loan default problem and you're working with your lender to wind down the business and settle the deficiency with an SBA Offer In Compromise (SBA OIC), time is of the essence. Lenders, banks, the CDC and the SBA generally do not wait much longer than 60-90 days after the defaulted borrower has been liquidated or shut down to tender an SBA OIC for consideration which, if accepted, could potentially release the guarantors from the deficiency for a lesser amount.

As part of the process, the bank, the lender, CDC or SBA should send you what is called the “60-day letter - click here to view: Sample 60 Day Referral Letter" where you'll be given only 60 days from the date of the letter to file an SBA OIC Package for SBA consideration. If you fail to timely submit an SBA OIC Package within the administrative time frame as noted in the letter you received, the bank or SBA will probably submit the file to the United States Department of Treasury for enforced collection, and thus, you will probably lose your one (1) time opportunity to settle for less than what is purportedly owed on the SBA loan debt through this special administrative process.

The United States Treasury Department rarely collects on these bad loans directly – rather they hire third-party collection agencies to handle them. These collection agencies don’t know anything about the history behind the loans – their job is to be ruthless in their collection efforts as they generally receive a generous percent of the collected amount or actually bought the so-called junk federal debt for pennies on the dollar.

Several of these federally approved third-party collection agencies or junk debt buyers are particularly nasty and rarely settle for less than 50% of the outstanding amount as the incentives for collection, litigation, and judgment pursuit are very high. Contrast that with the results that we have reviewed and settled and it’s easy to see the importance of addressing your outstanding SBA loan debt sooner rather than later, whether you’re working with a non-attorney consultant, an SBA Workout Attorney or the United States Treasury Department Circular 230 Practitioner, or attempting to do it yourself. If you think your banker is nasty or difficult to work with, you don’t want to experience the tactics of these collection agencies or junk debt buyers.

If you have an SBA loan default problem and received the 60-day referral letter to the Treasury Department, call us at 888-756-9969 to speak to one of our SBA Workout Attorneys and figure out your options. It's a complimentary Case Evaluation, or, simply a complete form to see if you pre-qualify for an SBA OIC.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

construction accident injury lawyer

Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure

slip and fall attorney

Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements

truck accident injury attorney

Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

$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.

$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.

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture.  After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against our client’s monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars.  We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA).  As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy), but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.

Read more Case Results

Related Content

Read more sba debt articles