The transcript of the video follows below for further review.
SBA loans are the lifeblood for many industries. Many small businesses fail and the most recent recession was no exception resulting in a large number of small business failures. If you defaulted on an SBA loan are you necessarily precluded from obtaining another SBA loan? You may be able to obtain an SBA loan but it will be an uphill climb.
Unless waived by SBA for good cause, the SBA cannot provide assistance to a borrower that has previously defaulted on a Federal loan or Federally assisted financing, resulting in a loss to the Federal government; or owned or controlled by a business or any of its associates which previously owned, operated, or controlled a business which defaulted on an SBA loan and caused the Federal government to sustain a loss.
When a SBA loan default occurs, the borrower and the personal guarantors are placed on the credit alert interactive voice response system (CAIVRS), which essentially amounts to a “do not lend” list.
All is not lost, you can receive a waiver from the do no lend status where you can show “good cause.” When there are compelling circumstances, the lender shall send a written request for a waiver to the SBA
office processing the loan.
The lender must explain:
(A) the circumstances surrounding the prior loss and the relationship of the applicant to the entity causing the loss; and
(B) the connection between the individuals associated with the prior loss and the individuals requesting the new assistance.
This rule applies to:
1. The small business applicant;
2. Any business in which a principal of the small business applicant was also a principal in the entity that caused the loss;
or
3. Any business controlled by the same person(s) who controlled the entity that caused the loss.
If you are facing an SBA loan default, contact us today for a FREE initial consultation with an experienced SBA workout attorney at 888-756-9969
We analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise for your SBA loan default.
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 personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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.
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.
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