How to Avoid an SBA Loan Default - Peer to Peer Lending
We will analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise for your SBA loan default.
Are you currently dealing with an SBA Lien? Our team at Protect Law Group is here to keep you informed to help you take back control of your assets. Learn more today!
Book a Consultation CallDealing with SBA debt can be a daunting task for borrowers. One aspect that often causes confusion is the process of SBA lien release. In this blog, our team at Protect Law Group aims to demystify the SBA lien release process and provide borrowers with the information they need to navigate this crucial aspect of their SBA debt.
SBA lien release is the process by which the SBA removes their claim on a borrower's assets, such as a home or business property, that were pledged as collateral for the SBA-guaranteed loan. This step is crucial for borrowers looking to regain control over their assets, as it ensures that the SBA no longer has a legal claim on the property.
The SBA considers several factors when deciding whether to release a lien. These include the value of the property, senior liens, and the potential recovery in a forced sale. Borrowers must understand these considerations to present a compelling case for lien release.
When seeking a lien release, borrowers should approach the SBA with a well-prepared case that highlights the equity in their assets and the potential for a fair settlement. It is essential to gather documentation and evidence that supports your position and demonstrate your willingness to resolve the debt.
Engaging legal representation is crucial to facilitate smoother lien release procedures. SBA loan attorneys specialize in navigating complex debt situations, negotiating with the SBA and lenders, and protecting borrowers' interests. They possess the knowledge and experience necessary to advocate for borrowers effectively and prevent potential abuses by the SBA or lenders.
Understanding the SBA lien release process is vital for borrowers seeking business debt relief and SBA loan help. Seeking guidance from experienced SBA loan attorneys ensures borrowers have the support and expertise needed to navigate the complexities of SBA lien release successfully. Take proactive steps today to protect your assets and secure a brighter financial future by partnering with Protect Law Group.
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.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) f borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.
Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.
This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.
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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