SBA Loan Default: You Pledged Your Personal Residence, Now What?
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Former Senator Kelly Loeffler testified before the Senate Committee on Small Business and Entrepreneurship as part of her confirmation hearing for SBA Administrator. She outlined her priorities, including reducing regulatory burdens, expand
Book a Consultation CallOn January 29, 2025, former Senator Kelly Loeffler testified before the Senate Committee on Small Business and Entrepreneurship as part of her confirmation process for Administrator of the Small Business Administration (SBA). Her testimony provided valuable insights into her vision for the SBA and the policies she aims to implement if confirmed. Below, we break down the key points she addressed during the hearing and what they mean for small business owners.
Loeffler emphasized her dedication to advocating for small businesses, recognizing them as the backbone of the American economy. She noted that small businesses employ nearly half of the U.S. workforce and stressed the need for policies that foster growth, sustainability, and innovation. Her testimony reflected a strong focus on ensuring that entrepreneurs and small business owners have the resources they need to start, expand, and succeed.
A key highlight of Loeffler’s testimony was her experience in business and finance, which she believes makes her well-suited to lead the SBA. She detailed her tenure as the Chief Communications and Marketing Officer at Intercontinental Exchange, where she worked on financial services that impact businesses of all sizes. Additionally, she referenced her time as a co-owner of the WNBA team Atlanta Dream, where she dealt with operational and financial challenges firsthand. Loeffler asserted that her background in corporate leadership and financial markets will help her craft SBA policies that are practical and results-driven.
One of the most anticipated topics of her testimony was her policy priorities if confirmed as SBA Administrator. Loeffler highlighted three main areas of focus:
Strengthening SBA Programs Post-COVIDLoeffler also addressed how she would strengthen SBA programs, particularly in response to the COVID-19 pandemic. She acknowledged that many businesses struggled with shutdowns, supply chain disruptions, and labor shortages. If confirmed, she pledged to improve the administration of SBA loans and disaster relief programs to better support businesses in future crises.Commitment to Transparency & AccountabilityA key theme of Loeffler’s testimony was transparency and accountability. She assured lawmakers that, under her leadership, the SBA would focus on efficient program delivery and responsible resource allocation. By improving oversight and reducing inefficiencies, she hopes to restore trust between the SBA and small business owners.What’s Next?Loeffler’s nomination is currently under Senate review, and a confirmation vote is expected soon. If confirmed, small business owners can anticipate a focus on deregulation, expanded funding opportunities, and enhanced SBA programs.For business owners looking to navigate SBA loans, SBA settlements, or SBA Offer in Compromise (SBA OIC) options, staying informed about upcoming policy changes is crucial. Contact us today for guidance on SBA-related matters.
You can review the entire transcript here: https://www.c-span.org/program/senate-committee/small-business-administrator-nominee-kelly-loeffler-testifies-at-confirmation-hearing/655049?utm_source=chatgpt.com
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.
Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency. After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.
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.
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.
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