Demystifying SBA Lien Release: What Borrowers Need to Know
Are you currently dealing with an SBA Lien? Our team at Protect Law Group is here to keep you informed to help you take back control of your assets. Learn more today!
SEM REsource Capital, Inc. (SEM) is a Michigan non-profit corporation that the U.S. Small Business Administration (SBA) had authorized to participate as a Certified Development Company (CDC) in the Agency’s 504 loan program. As of October 31, 2013, SEM had approximately 255 SBA 504 loans in its portfolio with a total outstanding balance of approximately $131 million.
On Friday, January 31, 2014, based upon the regulatory non-compliance grounds set forth in the Final Agency Decision, SBA permanently revoked SEM’s ability to participate in the 504 lending program and required SEM to permanently transfer its entire 504 portfolio of SBA loans to Global Management Services, a third-party servicer acting on SBA’s behalf.
For more information, the SBA’s Final Agency Decision in its entirety can be found on the SBA’s website here: https://www.sba.gov/sites/default/files/SEM-Final-Agency-Decision(1-31-14)-website_Redacted.pdf
You should not have to struggle to settle SBA debt on your own. Instead, turn to one of our NADCO affiliate 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, you deserve professional aid! Our attorneys all know how to win SBA OIC and DOT collection cases. If you contact us, we will help you settle SBA debt once and for all. After you schedule an appointment, you will meet with a dedicated SBA OIC & DOT Attorney who will help you through your administrative legal battle. After your claim is resolved, you will 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 resolve 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 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.
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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
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