If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
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Recall Your SBA Debt from Treasury Department's Bureau of Fiscal Service: Learn How

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Recall Your SBA Debt from Treasury Department's Bureau of Fiscal Service: Learn How

Your small business has failed ... The loan has been in default for years … The business has shut down … all business property, equipment, inventory and/or commercial real estate has been been liquidated, foreclosed or repossessed.

The originating lender has opted not to file a lawsuit against you on your personal guarantees.  You think that everything is over … however, several years later, you receive a Notice from the SBA claiming you owe them a ton of money and need to contact them within 60 days of this Notice or you get a Collection Letter from the Treasury Department’s Bureau of Fiscal Service claiming that you owe the SBA an old debt and if you don’t contact them with arrangements for repayment, they will add up to 30% of the original balance to the SBA debt.  What do you do?

First, if you received the Official 60-Day Notice from the SBA, do NOT ignore it (click here to view a Sample Official 60-Day Notice).  There can be severe consequences if you do.  The 60-Day Notice gives you a one-time opportunity to resolve your SBA debt either through an Offer in Compromise (where you pay a lesser amount based on unique factors pertinent to your case) or a Repayment Agreement (an agreed-upon installment pay-back plan, preferably for a lesser amount owed) with the SBA.

Second, if you received a Collection Letter from Treasury, do NOT ignore it (click here to view a Sample Collection Letter).  However, you should not attempt to contact Treasury by yourself to try and resolve the debt as you do not want to acknowledge you owe the debt as alleged or provide them with any financial information because you could hurt your own negotiating position.  Once your SBA debt has been transferred from the SBA to the Treasury Department’s Bureau of Fiscal Service, you may receive a series of collection letters and phone calls demanding that you contact Treasury.

Treasury’s collection agents say that they will only entertain settlement offers at a 20% discount if you pay the total amount (principal SBA debt balance plus up to 30% in accrued interest, penalties and administrative costs) if you pay them within 30 days.  For example, if your alleged SBA debt is $200,000 and the accrued interest, penalties and costs is $60,000, totaling $260,000, Treasury’s collection agents will tell you they’ll settle your debt for $208,000 (80% of total SBA debt claimed with accruals).  But, you must pay the $208,000 within 30 days of accepting Treasury's offer.  Or, you can agree to their repayment agreement where you will have to pay $7,222 a month for the next 36 months (3 year term).  For most folks, these settlement offers are virtually impossible to accept.  If, however, you don’t accept their harsh offers, Treasury will then engage in enforced collection and use a series of administrative collection tools, such as Administrative Wage Garnishment (AWG), Treasury Offset against your federal salary, pension, benefits, contractor payments and/or tax refunds.  Private collection agencies can be brought in to help them collect the outstanding debt.  Further, your SBA debt can also be referred to the Department of Justice for collection litigation

Therefore, if your case is still with the SBA, it’s best to respond to the 60-Day Official Notice and petition for an SBA Offer in Compromise or, if you don’t qualify for an SBA OIC, to negotiate a Repayment Agreement.  But if your case has been transferred to Treasury, and if there are grounds to do so, you should try to recall your debt back to the SBA.  If you did NOT receive the Official 60-Day Notice from the SBA, you will want to hire qualified attorneys to leverage your rights to try and get your case recalled from Treasury back to the SBA for resolution.

If you need help with an SBA offer in compromise or would like to know if your SBA debt can be recalled from Treasury Department’s Bureau of Fiscal Service, contact us today for a Free initial case evaluation with an experienced SBA and Treasury workout attorney at 1-888-756-9969

We can analyze your prospects for an SBA offer in compromise, help neutralize Treasury’s aggressive collection demands and find out if your case is eligible for recall from Treasury back to the SBA.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$324,000 SBA 7A LOAN - SBA OHA LITIGATION

$324,000 SBA 7A LOAN - SBA OHA LITIGATION

Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase.  The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

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.

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

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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