SBA Loan Default News: The Worst Franchises
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Are you straining with your SBA loan repayment and you are opting to defer the loan. Read this article to know how you can get an SBA loan deferment.
Book a Consultation CallAre you struggling to pay your SBA loan? Are you unsure about what to do next?
If you're facing this dilemma, you're not alone. Half of all small businesses struggle financially and often fold in the first five years.
But it doesn't have to be this way. A simple loan deferment could help you get back on track and save your business.
Here's what you need to know about an SBA loan deferment.
Accumulating too much debt early on can be a huge problem for a small business. Falling into debt you can't pay can lead to mountains of interest that only compounds the problem.
When you're on the verge of losing your business, it's scary. You may be tempted to file bankruptcy to end the debt and the worrying.
However, you should avoid bankruptcy if at all possible. Declaring bankruptcy often doesn't make sense for a small business and will make it hard to get any future business loans.
Before you choose bankruptcy, you should know there are debt relief options that can help you manage your debt and keep your business running.
The current pandemic has affected small business owners everywhere. Although some small businesses were able to rebound quickly, others have struggled.
Although private financial institutions provide SBA loans, they are backed by the Federal government through the SBA. This means SBA loans are secure loans that require collateral.
If you default, the lender has a right to recover what you owe. That could put your collateral, including your primary residence, business assets, car, etc. at risk.
Eliminating your small business debt is crucial for getting your business moving in the right direction. You need financial relief so you can focus on running your business.
An experienced SBA debt attorney understands the stress you may be dealing with right now. They know that eliminating your debt is the first step toward financial freedom.
An SBA attorney may be able to negotiate for a sizable reduction in your small business debt, including a reduction in principal. For many business owners, a more manageable debt makes all the difference.
With the right guidance, you may be able to avoid bankruptcy and eliminate or greatly reduce your debt.
The role of an SBA attorney is to help you restructure your business debt and get the relief you need so you can focus on running your business. It's important to have a professional guiding you through this process.
Many debt relief companies claim they can help you resolve your debt problems but are unable to fulfill this promise. Having an experienced SBA attorney working for you ensures you have the best chance for debt relief.
A skilled negotiator knows how to deal with creditors, work to protect your rights, and get the best deal possible for you. Your SBA attorney will keep all your financial dealings confidential.
This ensures that your financial issues will remain private and will not disrupt your company's reputation.
Your attorney will work with your creditors to negotiate a lesser debt on your behalf. Creditors are more likely to offer a better deal when you have an attorney representing you.
An SBA attorney is familiar with collection laws and what a creditor can and cannot do when attempting to collect a debt. They will communicate directly with your creditors and will instruct them to stop contacting you.
If you are facing an SBA loan default, don't settle for bankruptcy.
Instead, hire a reputable SBA attorney to help you with the process of SBA debt settlement.
Before any litigation occurs, it's possible to enter into settlement negotiations with your lender for a deferment or other workout of the loan. A deferment provides you with some breathing room and enables you to get your business on the right track before paying your monthly loan commitment.
The terms of a deferment can vary as will the "catch up" provisions.
Every case is different. It's in your best interest to have an SBA attorney by your side every step of the way.
When you're faced with an SBA loan default, the worst thing to do is bury your head in the sand. The sooner you begin seeking a loan deferment, the better.
The worst case scenario most often results in the lender filing a lawsuit.
For this reason, the sooner you address the problem and begin working with an SBA attorney, the better.
Don't wait until it's too late to save your business. Start the SBA loan deferment process right away.
The experienced legal team of Protect Law Group provides real solutions for individuals facing SBA loan problems. We're here to help. Contact us today for a case evaluation.
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 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.
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.
Client's small business obtained an SBA COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
.jpg)
