Credit Crunch For Small Businesses
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
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.
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.
Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency. After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.
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.
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