If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

Avoid Loan Foreclosure With an SBA Offer in Compromise

Book a Consultation Call

Avoid Loan Foreclosure With an SBA Offer in Compromise

The Small Business Administration provides homeowners with loans that help in rebuilding a business or home after a natural disaster. However, if the borrower goes into default, the SBA can foreclose. Read further to learn more about the SBA's disaster loans, along with their foreclosure and SBA Offer in Compromise process.

The Basics of the SBA Disaster Loan

The Small Business Administration offers fixed rate, low interest loans and a Tax Offset Program to fix homes, businesses and property destroyed or damaged in a federal disaster area. Loans may be used to replace or repair:

  • Commercial or private real estate
  • Personal dwellings
  • Machinery and equipment
  • Business inventory

Business owners, renters and homeowners are all eligible for SBA loans in most cases. The sections below list the most common types of disaster loans, along with the groups of borrowers most likely to benefit.

Personal Property and Home Loans

Homeowners can apply for a loan of up to $200,000 to restore a primary residence to the same condition in which it was before the disaster. Homeowners and renters may borrow $40,000 or less to replace or repair personal belongings such as clothing and furniture that are damaged or destroyed.

Business Loans

The SBA offers loans to business owners who incur financial losses during a natural disaster. These disaster loans can be used to replace or repair non-covered equipment that's lost during a storm, fire or earthquake.

Disaster Economic Injury Loans

Businesses can also qualify for loans to help pay necessary and recurring operating expenses until things are back to normal. If a business suffers economic losses because of a disaster, it can get a loan even if no damage occurs.

Foreclosure of SBA Loans

Because disaster help is given as a loan rather than a grant, the borrower must legally agree to a repayment plan. These loans are available directly from the agency or through participating lenders, and are serviced accordingly. For certain loans, borrowers must provide collateral such as a security interest in or a lien on the property. If the person goes into SBA loan default, the loan can be foreclosed in or out of the judicial setting after the borrower receives an SBA demand letter. A lawyer can help a borrower consider options to avoid an SBA loan foreclosure, such as bankruptcy or an SBA Offer in Compromise.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

construction accident injury lawyer

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

slip and fall attorney

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

truck accident injury attorney

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.

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

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.

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

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. The 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 our SBA lawyers also saved him approximately $227,945 over the term of the workout.

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Clients personally guaranteed an SBA 504 loan balance of $337,000.  The Third Party Lender had obtained a Judgment against the clients.  We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.

Read more Case Results

Related Content

Read more sba debt articles