Congress Not Impressed with New SBA Program
We will analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise for your SBA loan default.
Discover the pros & cons of SBA loan modification with Protect Law Group. Expert SBA debt relief help for small businesses. Take control today!
Book a Consultation CallAre you a small business owner struggling under the weight of SBA debt? The road to financial recovery might be closer than you think with the comprehensive assistance of Protect Law Group's SBA Debt Relief Program. In this blog, we'll explore the ins and outs of SBA loan modification, shedding light on the pros and cons while showcasing why Protect Law Group is your ultimate partner in navigating the complex realm of Small Business Debt Relief. Get in touch with our team today and get answers to all your questions.
1. Tailored Solutions: One size does not fit all in the world of debt relief. Protect Law Group understands this well. Our team of experts crafts customized SBA debt relief plans, addressing your unique business challenges and financial constraints.
2. Financial Resilience: Through strategic SBA loan modification, you gain the opportunity to regain financial stability without resorting to bankruptcy. Our proven methodologies can significantly lower your monthly payments, providing breathing room for your business to recover.
3. Expert Negotiation: Navigating the bureaucratic landscape of SBA debt relief can be daunting. The skilled negotiators at Protect Law Group have an in-depth understanding of the system. They work tirelessly to secure the best possible terms for you, ensuring you reap the benefits of the Best Debt Relief solutions.
4. Peace of Mind: Dealing with SBA debt can be emotionally draining. Our dedicated team not only handles the intricacies of debt relief but also offers the emotional support you need during this challenging journey.
1. Process Complexity: SBA loan modification involves a labyrinth of regulations and paperwork. However, with Protect Law Group by your side, you don't have to face this complexity alone. We streamline the process, ensuring efficiency and accuracy every step of the way.
2. Potential Credit Impact: It's important to note that debt relief might have an impact on your credit score. However, the long-term benefits of financial stability often outweigh short-term credit concerns.
3. Time-Consuming: The road to Small Business Debt Relief can be time-consuming due to paperwork, negotiations, and approvals. But, with the guidance of Protect Law Group's seasoned professionals, you can be assured of a smoother and faster journey.
At Protect Law Group, we're not just counselors; we're partners dedicated to your success. Our commitment to providing top-tier debt relief help is evident in every success story we've helped write. Don't wait to alleviate the burden of SBA debt — take control of your financial future today. Contact Protect Law Group and experience firsthand how our SBA Debt Relief Program can transform your business trajectory. Your journey to financial freedom starts with a call.
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 an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.
We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.
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.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
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