Let Us Settle SBA Debt For You - Win Your SBA Loan Default or SBA OIC Case
We are attorneys that exclusively work on SBA OIC cases and other federal debt issues.
The Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration directed federal agencies to step up their efforts to investigate and prosecute fraud.
Book a Consultation CallThe Biden administration has made it clear that it will take action against scammers who have stolen billions in COVID relief funds. The administration has directed federal agencies to step up their efforts to investigate and prosecute fraud related to pandemic relief programs.
The relief programs were established to provide financial support to individuals and businesses impacted by the COVID-19 pandemic. Unfortunately, scammers have taken advantage of these programs and have stolen billions of dollars.
The Biden administration has taken several steps to combat this fraud. It has created a COVID-19 Fraud Enforcement Task Force to coordinate investigations and prosecutions across multiple agencies. The task force is also working to increase public awareness of COVID-19 fraud and how to report it.
In addition, the administration has directed federal agencies to take a more proactive approach to preventing fraud. This includes improving fraud detection systems and sharing data across agencies to identify fraudulent activity.
The Biden administration has also made it clear that it will hold those who engage in COVID-19 fraud accountable. The Department of Justice has already brought several cases against individuals and companies that have defrauded the relief programs.
There have been various estimates of the amount of fraud that has occurred in COVID-19 relief programs. According to a report from the Government Accountability Office (GAO) released in November 2020, the federal government had distributed more than $2.6 trillion in pandemic relief funds as of September 2020, and the GAO estimated that improper payments, including fraud, could range from $2 billion to $4 billion.
However, more recent estimates suggest that the amount of fraud could be higher. According to a report from the Office of the Special Inspector General for Pandemic Recovery (SIGPR) released in January 2021, there were "significant levels of fraud" in the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, with estimated losses of $4.6 billion to $5.4 billion. More recent estimates put the number at $60 billion.
In February 2021, the Department of Justice announced that it had charged more than 150 individuals with COVID-19 related fraud, including schemes related to PPP and EIDL. The DOJ also announced that it had recovered more than $580 million in COVID-19 related fraud cases.
So while it's difficult to estimate the exact amount of fraud that has occurred in COVID-19 relief programs, it's clear that it has been a significant problem.
If you have a EIDL loan issue of more that $30,000, contact our law firm to reserve a consultation time.
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 personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’s ureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
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