SBA Default and Offer In Compromise.
SBA Default and Offer in Compromise - the OIC process may allow you to settle your loan for pennies on the dollar.
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 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.
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. The 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 our SBA lawyers also saved him approximately $227,945 over the term of the workout.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
.jpg)
