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Let Us Settle SBA Debt For You - Win Your SBA Loan Default or SBA OIC Case

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Let Us Settle SBA Debt For You - Win Your SBA Loan Default or SBA OIC Case

You should not have to struggle to settle SBA debt on your own. Instead, turn to one of our attorneys who specializes in SBA OIC and DOT collection claims. We are dedicated to helping you resolve SBA loan default by reviewing whether the SBA debt is legally enforceable against you.

The SBA guaranty

The federal government’s guaranty is considered the most important collateral for an SBA loan.  This is especially true for any SBA 7(a) loan. The Third Party Lender’s ability to collect on an SBA guaranty, however, is not absolute.

The SBA has established written procedures for liquidating loans.  They are detailed, complex and also very cumbersome. For example, SBA’s regulations dictate that third party lenders obtain the SBA’s written approval before they take certain liquidation actions, and that the third party lender notify the SBA in advance of its intention to pursue certain other liquidation and/or collection actions.

In addition, SBA regulations also require third party lenders to take certain actions that they ordinarily would not take on their own conventional loan portfolios, particularly where one of the SBA loan obligors files for bankruptcy or dies. Finally, even if a third party lender makes all of the right decisions and selects the appropriate course of action, it may not document its action sufficiently in accordance with the SBA’s requirements.

As such, when it comes time for the third party lenders to enforce their rights under an SBA loan but makes a mistake or fails to act in strict compliance with the applicable SBA regulations, the SBA may limit its obligation to reimburse the third party lender for liquidation costs, may reduce the amount of the SBA guaranty, or may even refuse to honor the guaranty outright.

Moreover, because the guaranty purchase is the last step in the SBA loan liquidation process, third party lenders typically do not discover a costly mistake until it is too late to correct the problem. In too many cases, a lender’s errors do not come to light until the SBA denies a guaranty purchase request or penalizes the lender with a reduction in its guarantee.

When certain irregularities associated with an SBA guaranty purchase are discovered, it may provide federal SBA debtors additional ammunition to contest the validity or enforceability of subject SBA debt.  The argument is that the SBA should not have honored or purchased the guaranty presented by the third party lender insofar as the third party lender did not strictly comply with specific written SBA regulations.  Had the SBA knew or should have known of the third party lender’s non-compliance, the SBA guaranty would have either been denied or, at the very least reduced.  This fact, alone, had it been discovered, would then call into question the validity and/or enforceability of the SBA debt as it relates to the federal SBA debtor.

Therefore, it is extremely imperative for SBA loan obligors or guarantors to consider, at the outset, whether the federal SBA debt is even enforceable against them – notwithstanding the existence of a signed promissory note or personal guarantee – as those initial documents preceded the transactions involving the SBA guaranty and assignment of the collection rights regarding the SBA loan from the original third party lender to the SBA or Treasury.

LIABILITY INVESTIGATION

Protect Law Group’s SBA Attorneys and United States Treasury Dept. Practitioners offer SBA debtors the rarest of commodities: highly skilled federal administrative law practitioners who are well-versed in SBA’s regulations.

Our SBA & DOT Practitioners look at all angles of defending, appealing and settling SBA debts.  They recognize that it is important to uncover certain irregularities in an attempt to negotiate an SBA OIC or DOT compromise based on the applicable findings. To do so, they try to look for certain guaranty purchase issues and violations of applicable SBA regulations that may have occurred but went unnoticed by the SBA during the liquidation process.  If discovered, then the next strategic endeavor is to call into question the actual validity or enforceability of the SBA debt as against the SBA debtors or obligors.

If you are struggling with circumstances that involve SBA loan default or DOT collection action, you deserve professional help! Our attorneys know how to settle SBA OIC and DOT compromise cases. If you contact us, we can help you settle SBA debt once and for all. After you schedule an appointment, you confer with a dedicated SBA OIC and DOT Practitioner who helps you through your administrative legal battle. After your claim is resolved, you never again have to worry about your SBA loan default or DOT collection problem haunting you. Our team of lawyers has assisted many clients through the years. Now it is your turn! You truly can settle SBA debt for good!

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. Client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but we also save him approximately $227,945 over the term of the workout.

$150,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$150,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

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.

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