The SBA's new Standard Operating Procedure (SOP) regarding SBA Personal Guarantees
We help people who need to avoid SBA loan default by teaching them about SBA offer in compromise and about various SBA loan problems such SBA Personal Guarantees
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.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
Client personally guaranteed SBA 7(a) loan balance of $58,000. Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Clients personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
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