The transcript of the video follows below for further review.
If you have defaulted on a Small Business Administration (SBA) loan and you are a federal employee, more than likely the Department of Treasury (DOT) will send you a notice stating that the DOT will offset your wages or salary, that is, take a portion of your paycheck every pay period until the debt is paid.
You can, however, appeal the wage garnishment or offset to the SBA’s Office of Hearing and Appeal (OHA). This course should not be pursued lightly and is not appropriate for a non-attorney or an inexperienced attorney in OHA cases.
The OHA assigns an administrative law judge (ALJ) to handle your appeal. The SBA will similarly assign an attorney to represent the SBA in the appeal. As stated, an OHA appeal amounts to a litigated case with provisions for motions, subpoenas, motions for summary judgment, etc. Moreover, if the law and provisions of the OHA appeal process are not followed, a petitioner may be subject to sanctions by the OHA. One should not be penny wise and pound foolish when it comes to appealing a federal salary offset or garnishment.
The OHA appeal of your federal salary garnishment or offset can, however, be an effective avenue to resolve your SBA loan default either by judicial decision or by settlement with the SBA. If you can prove that the debt does not exist or is not enforceable, you may secure relief from the debt and the wage garnishment or offset. A strong appeal may also convince the SBA that the debt should be settled rather than litigated in front of the OHA.
If you have defaulted on an SBA loan and are a federal employee, please contact Protect Law Group for a consultation at 1-888-756-9969 or visit our website at www.sba-attorneys.com.
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 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.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the 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.
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