SBA Loan Default - Franchisee Defaults
Dealing with an SBA OIC case can be hard. You should allow one of our lawyers to settle SBA debt for you. Talk to us about your SBA loan default.
Small business owners may face serious financial difficulties. When these difficulties present issues such as foreclosure, the owner must take immediate action to prevent seizure of their property. An attorney helps these business owners acquire an SBA Offer in Compromise to prevent these issues.
The business owner must take action as soon as they receive the SBA demand letter. They should bring the letter to their attorney for further review. The attorney needs the loan contract acquired by the business owner as well. The terms dictate what actions are possible to prevent foreclosure. These terms tell the attorney what they need to do to approach the lender to acquire the compromise and prevent further legal action.
An SBA loan foreclosure gives the lender the right to seize the property for sale. These government loans are secured by a guarantee that the business owner will pay at least a specific percentage. The loan documents dictate the total value of the guarantee. It may present the business owner with the opportunity to negotiate a reduced settlement. If they have generated equity in the property, the attorney could acquire this reduction easily.
Thea attorney acquires a guarantee for the settlement value. This prevents the lender from changing their mind and fighting against the business owner. The attorney helps the business owner manage the terms of the settlement and submit the required value without issues. They prevent further repercussions of an SBA loan default through these measures.
Businesses that are in financial trouble may also face overwhelming tax liabilities. The attorney helps them through a Tax Offset Program. The program helps them to acquire a settlement through the IRS.
Small businesses need further assistance when they face foreclosure. An attorney helps them to manage government-backed loans. These loans require a specific value to settle them properly. They also provide extra protection for the borrower. Business owners who are facing adverse legal action including foreclosure should contact an attorney today.
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
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
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.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their home as additional collateral. SBA OIC accepted for $87,000 with full release of lien against home.
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.
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