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Can I Obtain Another SBA Loan After A Default?

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Can I Obtain Another SBA Loan After A Default?

 

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.

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

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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

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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

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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.

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 504 loan balance of $375,000.  Debt had been cross-referred to 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.

$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.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

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