How Can I Get an SBA Loan Deferment?
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.
Small businesses could face serious financial issues that could lead to a SBA loan default. If this occurs, the lender is within their rights to file for a foreclosure. Once this begins, the business owner could face difficulty stopping it. A SBA Offer in Compromise could provide an opportunity to prevent the serious impact on the business owner's credit rating.
These offers are a settlement offered to the lender that is lower than the total outstanding balance. An attorney provides the borrower with an appropriate percentage to offer to the lender. They prepare the documentation of the settlement and submit to the lender. By representing the borrower, they help the business owner protect their business against further negative actions.
The first step for the business owner is to approach an attorney as soon as they receive the SBA demand letter. Once they receive the letter, they have a deadline assigned. The borrower must take action before this deadline or face immediate foreclosure. This could shut down their company entirely. It could also prevent them from acquiring a new business location in the future. Once the foreclosure occurs, the business owner is still responsible for the debt.
The attorney presents the settlement offer to the lender. They negotiate the settlement and may increase the percentage required. These loans are guaranteed by the Small Business Administration and require the business owner to submit a portion of the outstanding balance. The attorney works with the lender to determine a fair value and presents this value to the business owner.
Once the lender accepts the settlement, the remaining balance is written off. The attorney could help the business owner offset any additional taxes or fees. This could present the business owner with the most appropriate solution to stop the SBA loan foreclosure now.
Small business owners should take action when they receive a notification of default. A default gives their lender the right to file for a foreclosure and seize their property. For most small business owners, seizure could lead to a total shutdown of their business. Owners who need to acquire a settlement or Tax Offset Program should contact an attorney now.
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 COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
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.
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.
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