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.
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.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.
As part of the business closure review and audit, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability for the owner/officer.
This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA Offer in Compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.
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