SBA Loan Default: The Debt Collection Improvement Act of 1996
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.
SBA COVID-19 PPP and EIDL Loans: SBA Ramps Up Audits and Investigations
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On August 5, 2025, federal prosecutors unsealed an indictment charging small business owner, Jabari Kadar Long, with conspiracy, wire fraud affecting a financial institution, and money laundering tied to fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL)applications. Authorities allege Long and unnamed co-conspirators siphoned more than $3 million in COVID-relief funds by inflating payroll figures and the number of employees for his small business, “Priceless Preservations Construction.” Source:(Department of Justice)
The defendant is presumed innocent, yet his case adds to a growing wave of COVID-relief prosecutions—and a clear message from the Department of Justice (DOJ) that it intends to investigate, find and prosecute fraudulent borrowers and guarantors well into 2026 and beyond.
Our seasoned SBA Attorneys blend white-collar defense experience with knowledge of Paycheck Protection Program compliance, COVID EIDL regulations, and SBA administrative procedures. Whether you face a COVID EIDL Business Closure Review, an OHA case, or need a proactive compliance check-up, we marshal document reviews, conduct legal research and outline settlement strategies to protect your business and personal assets.
The Long indictment shows that “self-certified” COVID-relief loans are under a microscope—and mistakes can morph into criminal accusations of SBA loan fraud. Don’t wait for an information document request, an FBI target letter or federal subpoena to get your house in order. Schedule a confidential strategy session with our SBA loan defense team today to safeguard the future you worked so hard to build.
If you receive a “business closure review,” “post-funding compliance review,” or any sudden SBA document request:
Contact experienced SBA loan defense attorney immediately.
Our SBA Attorneys have guided thousands of small businesses through reviews, contested or negotiated debts assessed against owners, officers and guarantors, and litigated cases at the SBA Office of Hearings & Appeals (OHA) Court before presiding Administrative Law Judges (ALJs).
Schedule a confidential strategy session today → keep your success story from becoming the next SBA nightmare tale. If you believe your SBA COVID PPP or EIDL loan could be targeted for enforced collection, business closure review, audit, investigation or an AFCA claim, contact us at SBA-Attorneys.com for a confidential Case Evaluation.
This article is provided for informational purposes only and does not constitute legal advice. Consult a qualified SBA-Attorney for advice regarding your individual situation.
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.
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.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
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