The Importance of Proper Documentation for SBA Forgiveness
Discover how proper documentation can secure SBA loan forgiveness. Expert tips from seasoned SBA loan attorneys for successful business debt relief.
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.
Client personally guaranteed an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.
We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.
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 negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
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