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.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. Client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but we also save him approximately $227,945 over the term of the workout.
$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.
$505,000 SBA 7A LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.