SBA Short Sales
SBA short sales occur when the property securing an SBA loan is sold for less than the loan amount.
With the guidance and support of experienced SBA loan attorneys from Protect Law Group, you can find a concrete path to SBA debt resolution. Learn now.
Book a Consultation CallAs a small business owner, dealing with SBA loan problems can be overwhelming and have a significant impact on your business and personal finances. Protect Law Group understands the challenges you face and specializes in providing concrete solutions to settle SBA debt. In this blog, we will discuss the key insights every small business owner should know about SBA forgiveness, shedding light on how our experienced SBA loan attorneys can help you navigate this complex process.
At Protect Law Group, our team of Federal Agency Practitioners and SBA Attorneys are well-equipped with the knowledge and expertise in six core disciplines necessary to resolve SBA loan problems. These strategies include deferment, administrative representation, SBA Offer in Compromise (SBA OIC), administrative litigation, negotiations, and SBA Office of Hearings & Appeals representation. With their extensive background in finance, law, litigation, risk management, and negotiations, our team is dedicated to minimizing damage to your business or personal asset base.
SBA loan problems involve intricate legal and financial aspects that require a specialized understanding of constitutional law, contract law, federal administrative law & procedure, commercial & banking litigation, risk management, asset exemption protection, bankruptcy law, and negotiations. Our SBA loan lawyers possess the necessary expertise to guide you through these complexities, ensuring the best possible outcomes for your business.
Working alongside experienced SBA loan attorneys is crucial when dealing with SBA forgiveness. They understand the intricacies of the SBA program and can develop tailored strategies to negotiate and settle SBA debt on your behalf. Their legal expertise and comprehensive knowledge empower them to protect your rights and assets while pursuing the most favorable resolution for your SBA loan problems.
When it comes to SBA debt settlement, our team of professionals at Protect Law Group strives to negotiate with creditors and the SBA to achieve the best possible outcome for our clients. By leveraging their expertise in finance, law, and negotiations, our SBA loan attorneys work diligently to settle your SBA debt through various strategies, such as SBA Offer in Compromise, administrative representation, and litigation. We aim to minimize the financial impact on your business or personal assets, allowing you to move forward with confidence.
Navigating SBA forgiveness and settling SBA debt can be an arduous journey for small business owners. However, with the guidance and support of experienced SBA loan attorneys from Protect Law Group, you can find a concrete path to resolution. Our team's expertise across finance, law, litigation, and negotiations ensures that your SBA loan problems are handled with utmost care and efficiency. Don't let SBA debt hinder your business's growth — contact our knowledgeable SBA loan attorneys to find the optimal solution for your unique circumstances.
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.
Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.
As part of the business closure review and audit, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability for the owner/officer.
This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA Offer in Compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.
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 his 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.
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