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
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SBA Loan Default - Can I Modify My Note?

We help people who need to avoid an SBA loan default by advising them about the SBA offer in compromise and about other various SBA loan problems.

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SBA Loan Default - Can I Modify My Note?

We provide individuals who are facing SBA loan default with solutions. For instance, we will help you understand different SBA loan problems and will teach you about SBA offer in compromise.

Dealing with the idea that you might be facing SBA loan default can be terrifying. The SBA attorneys in our office are skilled at helping clients understand all of the facets of their situations. If, for instance, you need to know what an SBA offer in compromise is, you can simply ask your lawyer. You should never face SBA loan problems alone. It is important to retain the services of an attorney who can help you through this difficult time in your life. We urge you to read about the services that we have available and to contact us if you believe that we can be of assistance to you right now.

Many Borrowers ask the question - can I modify my note?  In certain circumstances a note can be modified.  With regard to 7(a) Loans sold on the secondary market, the Secondary Participation Guaranty Agreement (SBA Form 1086) prohibits any change to the repayment terms of the Note unless the guaranteed portion of the loan has been purchased by SBA or the written consent of the secondary market investor has been obtained—unless the modification involves a one-time deferment that does not exceed a continuous period of three monthly installments.

The date that regularly scheduled installment payments are due may be modified to facilitate the Borrower's ability to repay the loan or a workout.  For example, payments originally scheduled to be made on a monthly basis, may be changed to a quarterly or annual basis if there is justification for the change such as the seasonal or cyclical nature of the Borrower's revenue stream.

A loan may be changed from a revolving loan to a non-revolving loan to facilitate the repayment or orderly liquidation of the loan.

The installment amount due under a Note may be modified to ensure that the loan balance is properly amortized over the remaining life of the loan, to help a viable Borrower meet long or short term goals, or to facilitate a workout.

The interest rate on the Note may be modified to help a viable Borrower meet long or short term goals, or to facilitate the recovery on a loan in liquidation status.  For example, the interest rate may be modified as part of a workout agreement designed to achieve the highest possible recovery in the shortest amount of time.

Finally, the maturity date of a Note may be extended for up to 10 years beyond its original maturity date if:

a.  The extension is requested before the SBA loan guaranty expires, i.e., less than 180 calendar days after the original maturity date; and

b.  The extension will aid in the orderly repayment of the loan.

If you are in default on your SBA loan, please contact us at 888-756-9969 for your FREE case evaluation.

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.



Clients personally guaranteed SBA 7(a) loan balance of over $300,000.  Clients also pledged their home as additional collateral.  SBA OIC accepted for $87,000 with full release of lien against home.



Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. Client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but we also save him approximately $227,945 over the term of the workout.



Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.

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