Navigating SBA Loan Challenges: COVID-EIDL Charge-Offs, Trump 2.0 Policy Shifts, and the Future
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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.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.
After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
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