How Protect Law Group Can Help Your Small Business Achieve Loan Forgiveness
Learn how Protect Law Group's SBA Attorneys in San Diego, Orange, and Los Angeles Counties can assist your small business in achieving loan forgiveness. Contact us!
One of Loeffler’s leading initiatives is promoting U.S.manufacturing and rebuilding domestic supply chains. According to Fox News reporter Andrew Mark Miller, Loeffler is positioning the SBA as an essential partner in President Trump’s effort to strengthen American manufacturing industries and drive job growth (Source: FoxNews).
Office of Manufacturing and Trade: Formerly the Office of International Trade,this office will now focus on economic independence, fair trade practices, and championing U.S. manufacturing startups
Loeffler’s memo commits the agency to a “zero-tolerance policy” regarding misuse of federal funds and outlines efforts to appoint a“Fraud Czar.” This initiative aligns with President Trump’s broader directive to eliminate government waste, including cooperation with the Department of Government Efficiency (DOGE).
Agency-wide Financial Audit: In the memo, Loeffler emphasizes the importance of improving the credibility of SBA financial statements, particularly regarding popular programs like 7(a) loans and the Small Business Investment Company (SBIC) program (Source: Fox News).
How It Affects You
Small businesses, owner-officers and guarantors should be prepared for more stringent business closure reviews, audits and screening processes for SBA loan programs.
Ensuring compliance with all relevant SBA regulations is paramount. Our seasoned attorneys can review your current SBA loans, financial records, and business practices in an effort to prepare and protect you from potential audits and civil fraud investigations - with particular emphasis for closed businesses that obtained and have defaulted on COVID EIDL Loans.
In line with President Trump’s executive order requiring federal employees to return to in-person work, Loeffler has announced an immediate end to remote work at the SBA’s headquarters. As Loeffler stated in a video shared on X (formerly Twitter), “about 90% of our employees are working from home” (Source: Kelly Loeffler, X VideoTranscription).
How It Affects You
While this change primarily impacts SBA operations, small businesses that rely on in-person consulting or direct contact with SBA representatives may see faster response times and improved customer service. However, any internal transformation can also lead to brief periods of transition. We can keep you informed of any potential backlogs or service delays as the SBA re-configures its workforce.
Under Trump’s second-term directives, the federal government is eliminating many diversity, equity, and inclusion (DEI) initiatives, which also impacts the SBA’s approach to awarding grants, loans, and other forms of assistance.
Immigration and SBA Assistance: Loeffler’s memo confirms the agency’s intent to ban illegal immigrants from receiving SBA support and to restrict “hostile foreign nationals” from accessing SBA resources (Source: Fox News).
Despite these sweeping changes, the heart of Loeffler’s memo is about expanding opportunities for small businesses. From cutting regulations to improving cybersecurity resources, the SBA aims to refocus on its core mission of fueling economic growth.
Ending Certain Voter Registration Activities: In an effort to return to “empowering job creators,” Loeffler plans to cease taxpayer-funded voter registration activities that were part of the previous Biden administration’s initiatives (Source: Fox News).
Relocating Offices Outside of Sanctuary Cities: The agency is also looking to move certain SBA offices out of jurisdictions with sanctuary city policies, part of a broader emphasis on enforcing existing immigration laws.
At Protect Law Group, we specialize in helping small businesses, owner/officers and guarantors navigate the ever-evolving landscape of SBA regulations and programs. Our Firm Attorneys can help with:
References
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific guidance related to your unique situation, consult with a qualified attorney.
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 received the SBA's Official 60-Day Notice for a loan that was obtained by her small business in 2001. The SBA loan went into default in 2004 but after hearing nothing from the SBA lender or the SBA for 20 years, out of the blue, she received the SBA's collection due process notice which provided her with only one of four options: (1) repay the entire accelerated balance immediately; (2) negotiate a repayment arrangement; (3) challenge the legal enforceability of the debt with evidence; or (4) request an OHA hearing before a U.S. Administrative Law Judge.
Client hired the Firm to represent her with only 13 days left before the expiration deadline to respond to the SBA's Official 60-Day Notice. The Firm attorneys immediately researched the SBA's Official loan database to obtain information regarding the 7(a) loan. Thereafter, the Firm attorneys conducted legal research and asserted certain affirmative defenses challenging the legal enforceability of the debt. A written response was timely filed to the 60-Day Notice with the SBA subsequently agreeing with the client's affirmative defenses and legal arguments. As a result, the SBA rendered a decision immediately terminating collection of the debt against the client's alleged personal guarantee liability saving her $50,000.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
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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