If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

SBA Debt Relief Options

Looking for SBA debt relief options? Click here to find out how submitting SBA offers in compromise can reduce your non-tax debt!

Book a Consultation Call

SBA Debt Relief Options

When you got the SBA loan, you had every intention of paying it back. Unfortunately, you are now struggling just to keep yourself and your business afloat. However, some viable options existif you need SBA debt relief.

Some of these options you may not have even heard of yet. One of them that is used with more success than not is when you submit an offer of compromise. Submitting an offer in compromise is just one way to relieve some of your ongoing business and financial pressure.

You may also negotiate with your lender so you can create a workout agreement that is better suited to your new financial circumstances.  Please keep reading if you want to learn more about submitting an offer in compromise and how it can reduce your non-tax debt.  

SBA Debt Relief

It is actually quite normal for small businesses to struggle to repay their debts. The Bureau of Labor reports that 20% fail in their first year. 50% of small businesses fail by their fifth year.

This is why the SBA approves millions of dollars in loans and guarantees each year. They want to ensure that you have every opportunity to succeed and grow. When you struggle to pay back your SBA loan, you can even seek SBA debt relief.

SBA Debt Relief Strategies

One option when seeking debt relief is to submit an offer in compromise to the SBA. The SBA will review your circumstances and determine if they accept or deny your offer. To help you better understand how submitting an offer of compromise can relieve some of your SBA debt, here are some strategies that explain the process.

SBA Offers in Compromise

As a personal guarantor, if your business defaults on an SBA loan you remain personally liable. The SBA offer in compromise program allows personal guarantors to pay less than the full amount of the debt to settle. However, your business must be closed to take advantage of the offer in compromise. The SBA has made exceptions, but it's a rare thing for them to do.

On top of closing your business, you need to consult with a legal representative for you to get the best shot at the SBA approving your offers in compromise program.

SBA Attorney

Your SBA Offer in Compromise Attorney can help you navigate the offer in compromise waters.

Overall your offer in compromise should be presented to the SBA in a compelling manner and be numbers-driven. The numbers must be factual and backed up by documents. The numbers also need to demonstrate to the SBA that they cannot get the loan money you owe them.

SBA Loan Debt

It understandable that small business owners turn to the SBA when they need to start or grow their business. But if your business begins to fail, the SBA loan debt is now an issue. Now that you're facing SBA loan debt, it is usually necessary to liquidate the business assets.

Unfortunately, the liquidation often fails to cover the balance of the loan. As such, any deficiency falls on you, the personal guarantor.

Administrative Wage Garnishment

The SBA, via the Department of Treasury, could order your employer or the IRS to garnish any disposable pay to satisfy the delinquent non-tax debt you owe to the United States if you defaulted on an SBA loan. They do this through the Administrative Wage Garnishment (AWG) process. SBA debtors do have the right to have an official hearing if they receive a notice of intended AWG.

Using experienced counsel to present evidence and legal arguments in your defense will increase your chances of defeating the AWG.

SBA Loan Default Statute of Limitations

The SBA loan default statute of limitations consists of the amount of time that a lender has to sue a borrower for defaulting on their loan. The law varies depending on where the borrower lives.

However, once the SBA or the Treasury service your debt, no statute of limitations exists as to administrative remedies such as administrative wage garnishment, tax refund offset or Social Security offset. A six year statute of limitations applies to the government's ability to sue you for breach of contract / guarantee. However, this only applies to filing a law suit, it does not apply to administrative remedies.

SBA Loan Deferment

The SBA lenders can provide loan deferments to borrowers when they want to modify or suspend their payments for a time. Loan deferments can be for a little as 3 months.

SBA Attorney

SBA Attorneys range from providing SBA loan default expertise to helping you with your SBA offers in compromise.

An assertive attorney experienced in Offer in Compromise cases can help you settle an SBA loan.

Reach out to Protect Law Group. Protect Law Group can make a difference in your SBA debt relief case. Having someone dedicated to helping you settle an SBA debt relief case will help you turn the page so you can move forward with the rest of your life.

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

construction accident injury lawyer

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

slip and fall attorney

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

truck accident injury attorney

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.



Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.



Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture.  After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against our client’s monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars.  We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA).  As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy), but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.

Read more Case Results

Related Content

Read more sba debt articles