Factors That Can Affect the Success of an SBA Offer in Compromise Application
Factors That Can Affect the Success of an SBA Offer in Compromise Application
Are you interested in learning more about the various types of SBA Loan Programs? Protect Law Group is here to keep you informed. Learn more today!
Book a Consultation CallNavigating the various Small Business Administration (SBA) loan programs can be a challenging task for many small business owners. These loan programs are designed to provide financial assistance and support to businesses that might otherwise struggle to secure funding. Understanding the different types of SBA loans, eligibility criteria, and application processes is crucial for maximizing the benefits they offer. In this blog, Protect Law Group will explore the key aspects of SBA loans and provide essential tips for businesses seeking financial assistance.
The SBA offers several loan programs to cater to different business needs. The most common types include:
Each SBA loan program has specific eligibility criteria that businesses must meet. Generally, to qualify for an SBA loan, a business must:
Specific programs may have additional requirements, so it's essential to review the criteria for the particular loan you're interested in.
The application process for SBA loans can be complex and time-consuming. It typically involves:
By following these tips and seeking SBA loan help from Protect Law Group, small businesses can improve their chances of securing the financial assistance they need.
Securing an SBA loan can be challenging due to stringent requirements and extensive documentation. Common obstacles include poor credit history, insufficient collateral, and lack of a solid business plan. An SBA loan attorney can provide valuable SBA loan help to overcome these challenges and improve your chances of success.
SBA loans offer several advantages, including lower down payments, longer repayment terms, and lower interest rates compared to traditional loans. These benefits can significantly improve a business's cash flow and financial stability.
An SBA loan attorney can be an invaluable resource in this journey, helping you navigate the complexities and achieve your business goals. Contact Protect Law Group to get started today!
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’s small business obtained an SBA 7(a) loan for $150,000. He and his wife signed personal guarantees and pledged their home as collateral. The SBA loan went into default, the term or maturity date was accelerated and demand for payment of the entire amount claimed was made. The SBA lender’s note gave it the right to adjust the default interest rate from 7.25% to 18% per annum. The business filed for Chapter 11 bankruptcy but was dismissed after 3 years due to its inability to continue with payments under the plan. Clients wanted to file for Chapter 7 bankruptcy, which would have been a mistake as their home had significant equity to repay the SBA loan balance in full as the Trustee would likely seize and sell the home to repay the secured and unsecured creditors. However, the SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection to the SBA. Clients then received the SBA Official 60-Day Notice and hired the Firm to respond to it and negotiate on their behalf. Clients disputed the SBA’s alleged balance of $148,000, as several payments made to the SBA lender during the Chapter 11 reorganization were not accounted for. To challenge the SBA’s claimed debt balance, the Firm Attorneys initiated expedited discovery to obtain government records. SBA records disclosed the true amount owed was about $97,000. Moreover, because the Clients’ home had significant equity, they were not eligible for an Offer in Compromise or an immediate Release of Lien for Consideration, despite being incorrectly advised by non-attorney consulting companies that they were. Instead, our Firm Attorneys recommended a Workout of $97,000 spread over a lengthy term and a waiver of the applicable interest rate making the monthly payment affordable. After back and forth negotiations, SBA approved the Workout proposal, thereby saving the home from imminent foreclosure and reducing the Clients' liability by nearly $81,000 in incorrect principal balance, accrued interest, and statutory collection fees.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency. After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.
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