Anatomy of SBA Loan Default: What You Need to Know
You're not alone if you are facing an SBA loan default. In fact, over the past few decades, SBA loan defaults have added up to almost $3.5 billion. Protect Law Group is a SBA debt resolution law firm that helps small business owners facing SBA loan default. Below, we'll go over what you need to know if this is you. Contact us for a free consultation today!
Understand the SBA Loan Default Collection Process
It's crucial that you understand the SBA loan default collection process so that you can come to terms with your lender. First, the SBA will send you a 60-day demand letter. This is a letter that states you have 60 days to arrange for payment before it goes to collection.
SBA Loan Settlement
Of course, you want to respond to your lenders and be willing to work with them in order to ensure you don't lose everything. An SBA offer in compromise is available for those businesses that are no longer in operation and that have sold all of their assets in an attempt to pay down their debt. An offer in compromise is settlement.
SBA Loan Forgiveness
Your offer in compromise may be accepted or rejected, whereby you can submit another offer. The SBA or your lender may forgive all or part of your debt, which, for many, is ideal.
Don't Go It Alone
With so much at stake, especially if you've put up your home as collateral, it's crucial that you partner with a top-rated SBA loan default attorney who understands the laws and can work to ensure you have the most favorable terms possible. Protect Law Group offers SBA loan services. Learn more today.
Why Hire Us to Help You with Your Treasury or SBA Debt Problems?
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.
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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.
$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT
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.
$488,000 SBA 7A LOAN - SBA OHA LITIGATION
Clients personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.