Chapter 11 Subchapter V Bankruptcy: Explained in Plain English
Chapter 11 Subchapter V has redefined the process of small business bankruptcies. Learn what's changed (and how Protect Law Group can help) in this guide.
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.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) where 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.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
Clients obtained an SBA 7(a) loan for their small business in the amount of $298,000. They pledged their primary residence and personal guarantees as direct collateral for the loan. The business failed, the lender was paid the 7(a) guaranty money and the debt was assigned to the SBA. Clients received the Official 60-Day Notice giving them a couple of options to resolve the debt balance directly with the SBA before referral to Treasury's Bureau of Fiscal Service. The risk of referral to Treasury would add nearly $95,000 to the SBA principal loan balance. With the default interest rate at 7.5%, the amount of money to pay toward interest was projected at $198,600. Clients hired the Firm with only 4 days left to respond to the 60-Day due process notice. Because the clients were not eligible for an Offer in Compromise (OIC) due to the significant equity in their home and the SBA lien encumbering it, the Firm Attorneys proposed a Structured Workout to resolve the SBA debt. After back and forth negotiations, the SBA Loan Specialist assigned to the case approved the Workout terms which prevented potential foreclosure of their home, but also saved the clients approximately $294,000 over the agreed-upon Workout term with a waiver of all contractual and statutory administrative fees, collection costs, penalties, and interest.
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