We often provide complimentary case evaluations for SBA loan debtors who are currently dealing with the DOT (Department of Treasury) for an old SBA debt that the DOT claims is “due and owing.” More often than not, when the Firm is hired, we not only try to obtain the client’s documents from their former “non-attorney” representatives, but also the subject loan and debt records from the SBA and the Bureau of Fiscal Service. We do this in order to carefully examine what happened and if there are any potential issues that may affect the client’s liability and the nature and extent of the SBA debt based on the client’s financial ability to repay.
In several reviews of our cases, we sometimes find that the SBA debtors had sought help from an “SBA debt settlement company.” The SBA debtors’ problems were never resolved properly and that their cases had eventually been referred to the DOT even after having been assured by the SBA debt settlement company salesperson that it would settle the SBA loan debt with either the participating lender or the SBA, itself through an SBA OIC (SBA Offer in Compromise).
Of course, one of the only things the “SBA debt settlement company” provided by way of assistance were some worthless “cut and paste” financial documents and so-called “SBA” advice that made no sense under the current SBA Standard Operating Procedures (SOPs) and Code of Federal Regulations (CFRs). When these non-attorney SBA "debt consultants" try to provide advice on SBA SOPs, applicable CFRs or federal bankruptcy law, they are conceivably violating prohibitions against non-attorneys practicing law without a license. Needless to say, when the SBA debtors seek our assistance, we ultimately find, that had they initially sought representation from federally authorized and qualified SBA or DOT counsel, their current situation could have possibly been avoided.
We, at Protect Law Group, APC, take offense that these “SBA debt settlement companies” continue to advertise their “SBA” debt resolution services as they are arguably engaging in the unauthorized practice of law. But, the fact that people with SBA loan problems still sign up for these “services” raises the question why do people believe the junk they are selling?
We think the real reason is twofold. First, people generally want to pay back the SBA debt and they believe that payment of some of the SBA debt is better than none at all. The second reason is fear of having to file bankruptcy. People are afraid of losing property and of the damage to their credit. While these are legitimate concerns, it does not explain why folks do not seek out a competent and federally authorized SBA professional to advise on these complex issues yet they fall hook, line and sinker for some fast-talking snake oil SBA debt settlement salesman over the telephone.
If you are facing an SBA debt or DOT collection issues, we implore you to seek out a federally authorized SBA or DOT attorney. Just because you seek advice, it does not commit you to signing up with the person conducting your Case Evaluation. But, because our Firm attorneys are experienced in all aspects of the SBA administrative debt collection process and other alternatives including bankruptcy, we can offer you meaningful solutions to your SBA debt or DOT collection problems.
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 claims. We are dedicated to helping you settle SBA loan default.
If you are struggling with circumstances that involve SBA loan default, you deserve professional help! Our attorneys all know how to win SBA OIC 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 lawyer who will help you through your administrative legal battle. After your claim is resolved, you never again have to worry about your SBA loan default 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!
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 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.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
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