What to Expect From the Loan Debt Collection Process
If you're struggling with loan debt, the last thing you need is to be blindsided by collectors. Here's what to expect during the debt collection process.
This is a re-post of articles about Minnesota State Senator, Sean Nienow and his wife, Cynthia, who, along with their company, National Camp Association, Inc. have been sued by the United States Department of the Treasury for approximately $748,000 in connection with an SBA loan default.
The lawsuit was filed January 17, 2014 with the U.S. District Attorney’s Office in Minneapolis for failure to make payments on a $613,000 small-business loan.
The complaint states that on January 16, 2009, the Small Business Association (SBA), through U.S. Bank, provided a loan to National Camp Association, Inc. The note was signed by Sean Nienow as the president and secretary of National Camp Association, Inc., and was personally guaranteed by the Nienows.
According to Isanti County court documents, Sean Nienow purchased the assets of National Camp Association, Inc, a New York corporation, for the amount of $699,000. He paid $621,000 on January 22, 2009, the day of closing, and promised to pay $30,000 plus accrued interest by January 16, 2011.
On October 11, 2011, Nienow and National Camp Association, Inc. were served with default and failure to make payments on any of the $30,000 or accrued interest, according to the lawsuit filed in Isanti County.
Isanti County District Judge Edward Bearse ordered Nienow to pay $7,755 to the New York company.
The business, described by various news sources as an organization helping parents find camps for their children, filed with the Minnesota Secretary of State on May 29, 2008 with Sean Nienow as its chief executive officer.
The registered office address was an unlisted address next to the Nienow’s home in Cambridge.
“There was no letter or permit application for a home occupation permit for the camp business,” said Lynda Woulfe, Cambridge city administrator. “It would have required one because they were conducting business out of the home.”
The intent of the home occupation permit is to allow limited passive commercial-type uses in a residential area to not detract from the character and integrity of residential neighborhoods. The home occupancy statute lists conditions and provisions such as utility usage not exceed that which is normally associated with the residence.
The U.S. Bank loan was guaranteed through SBA. This is usually done when the bank wants to loan the money, but the company may not have a lot of collateral, said Royce Nelligan, SBA district council. The SBA guarantee is typically 70 percent of the total loan.
The complaint states that the Nienows stopped making payments on the loan in July 2010. The principal balance is for $558,076.53. With administrative costs, attorney’s fees, and postjudgement interest, the lawsuit is asking for $747,937.62.
National Camp Association, Inc. was dissolved August 1, 2012, according to the Secretary of State’s website.
The complaint states demand for payment was made, but the defendants have not complied.
Nienow released a statement that the lawsuit is not related to any of his legislative duties. He is not taking any calls on the case.
“I have not yet received a copy of the legal filing in question,” Nienow said in his statement. “But it is clearly not related at all to any of my Minnesota Legislative duties. As with all pending actions of this sort, discussion of any details cannot take place until it is fully resolved.”
Nienow had previously served two terms, starting in 2003 and 2005, but was unseated by Rick Olseen (D-Harris). Nienow won back his seat in November 2010, and has held two additional terms, starting in 2011 and 2013. His seat is up for election in 2016.
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 settle SBA loan default.
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!
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 SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, 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.
.jpg)
