Credit Crunch For Small Businesses
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Empower your small business with expert legal guidance from the SBA attorneys at Protect Law Group. Learn more about legal considerations today!
Book a Consultation CallAs SBA attorneys, we understand the importance of navigating the complex legal landscape to protect the interests and ensure the success of small business owners. At Protect Law Group, we recognize the significance of legal considerations in running a business smoothly. In this blog post, we delve into key legal topics that every small business owner should be aware of to safeguard their operations and assets.
When starting a business, choosing the right entity structure is crucial. Whether a sole proprietorship, partnership, corporation, or limited liability company (LLC), each legal structure has implications for liability, taxation, and compliance. Our experienced team of SBA lawyers can help you determine the most suitable entity formation for your business to protect your personal assets and minimize risks. We also offer guidance along the way, if you have any questions that arise as you begin the journey of forming your own business entity.
Contracts are the cornerstone of business relationships and transactions. Having well-drafted contracts in place can help prevent disputes, clarify expectations, and protect your rights. Our SBA attorneys specialize in drafting, reviewing, and negotiating contracts tailored to your business needs, ensuring your interests are safeguarded in all agreements.
Navigating the ever-evolving complexities of employment law is essential for small businesses with staff. Understanding wage and hour regulations, non-discrimination laws, and employee rights is crucial to maintaining a compliant and harmonious workplace. Our legal experts can provide guidance on employment contracts, policies, and procedures to protect both your business and your employees. Protect your business by partnering with the small business law experts.
Intellectual property, such as trademarks, copyrights, and patents, can be valuable assets for small businesses. Protecting your intellectual property rights is essential to prevent infringement and maintain your competitive edge in the market. Our team of SBA lawyers can assist you in registering and enforcing your intellectual property to safeguard your creations and innovations.
Small businesses are subject to various regulations at the federal, state, and local levels, depending on their industry and location. Ensuring compliance with legal requirements, such as permits, licenses, zoning laws, and environmental regulations, is essential to avoid costly penalties and legal issues. Our legal experts are up to date on regulatory compliance to keep your operations running smoothly.
Small business owners face a myriad of legal considerations that require attention to protect their interests and ensure long-term success. At Protect Law Group, we are dedicated to helping small businesses navigate the complexities of the legal system with confidence. From entity formation to regulatory compliance and our speciality of SBA debt relief, our team of experienced lawyers is here to provide tailored legal solutions to meet your business needs and goals. Contact us today to discuss how we can assist you in safeguarding your business through proactive legal strategies.
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.
Client's small business obtained an SBA COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
Clients' 7(a) loan was referred to Treasury's Bureau of Fiscal Service for enforced collection in 2015. They not only personally guaranteed the loan, but also pledged their primary residence as additional collateral. One of the clients filed for Chapter 7 bankruptcy thinking that it would discharge the SBA 7(a) lien encumbering their home. They later discovered that they were mistakenly advised. The Firm was subsequently hired to review their case and defend against a series of collection actions. Eventually, we were able to negotiate a structured workout for $180,000 directly with the SBA, saving them approximately $250,000 (by reducing the default interest rate and removing Treasury's substantial collection fees) and from possible foreclosure.
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