We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Book a Consultation CallDealing with the idea that you might be facing an SBA loan default can be terrifying. The SBA attorneys in our office are skilled at helping clients understand all the facets of their situation. We will advise you as to the potential for an SBA offer in compromise. You should never face your SBA loan problems alone. It is important to retain the services of an attorney who can help you through this difficult time in your life. Please contact us for a free initial consultation.
Throughout the country, small-business lending is lagging behind other types of business and consumer loans. At the end of the first quarter, banks held $585 billion in loans to small businesses, up from the previous year by 1%, but 18% less than the apex of $711 billion in 2008, according to the Federal Deposit Insurance Corp.
The number of loans for $1 million or less held by banks has decreased about 14% to 23.5 million since 2008. In almost one-third of all counties in the United States, small-business lending remains below 2005 levels, estimates PayNet Inc.
A study by the University of Chicago of lending cutbacks during the financial crisis concluded that employment and business formation were depressed in counties with more exposure to banks that cut their small-business lending, according to University of Chicago economist Michael Greenstone, a co-author of the study. That is, the more small business lending, the more growth for small business, the more employment, tax revenue, etc.
Many business owners instead have used their savings or retirement plans, looked to family and friends for capital or tapped costlier forms of financing. More and more small businesses are looking online for small-business lending, which usually results in high-cost, short term lending.
Even when banks are lending to small businesses, the terms may seem onerous. It is not uncommon to see a business owner with a successful track record put his or her own home up as collateral for a business loan but also have a relative commit to placing their home as collateral. The overall effect seems to be a cautious approach to lending and borrowing.
If you are facing an SBA loan default or other financial trouble with the SBA or Department of Treasury, contact our firm today for a FREE case evaluation at 1-888-756-9969.
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.
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.
The client was 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.
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.
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