Congress Approves Emergency SBA Lending Limit
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.
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.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $212,000 on behalf of an individual guarantor. The borrower’s business experienced a significant downturn in revenue and was unable to sustain operations, ultimately leading to closure and a remaining personal guaranty obligation.
After conducting a thorough financial review and preparing a comprehensive SBA Offer in Compromise (SBA OIC) submission, we negotiated directly with the SBA and lender to achieve a settlement of $50,000—approximately 24% of the outstanding balance. This favorable resolution released the guarantor from further personal liability and provided the opportunity to move forward free from the burden of enforced collection.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) default in the amount of $150,000 on behalf of Illinois-based client. After the business permanently closed due to the economic impacts of the pandemic, the owners faced potential personal liability if the business collateral was not liquidated properly under the SBA Security Agreement.
We guided the client through the SBA’s Business Closure Review process, prepared a comprehensive financial submission, and negotiated directly with the SBA to release the collateral securing the loan. The borrower satisfied their collateral obligations with a payment of $2,075, resolving the SBA’s security interest.
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.
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