We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Book a Consultation CallDealing with the idea that you might be facing an SBA loan default can be terrifying. The SBA attorneys in our office are skilled at helping clients understand all the facets of their situation. We will advise you as to the potential for an SBA offer in compromise. You should never face your 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. Please contact us for a consultation.
You signed a personal guarantee for an SBA loan, either a limited or unlimited guarantee. You've had a falling out with your business partners and you want out of the guarantee. Do you have any options?
Yes, you can be released from the guarantee or substitute in another guarantor with the following considerations:
(1) The status of the loan. It should be current in all respects without a history of unjustified delinquencies, unpaid taxes, or deferment of installments.
(2) Written requests. The field office must have a written request from the borrower, the guarantor to be released, or the proposed substitute.
(3) Consent of other parties. The written consent of all parties (e.g., other guarantors, standby creditors, etc.) must be obtained before the transaction is finalized.
(4) Opinion of counsel. You must obtain the opinion of SBA counsel showing that no legal rights of the Agency will be adversely affected.
(5) Sale or reorganization. Where a request is received for the release of a guarantor because of reorganization or sale of the firm, you must provide full information as to the terms and conditions of the proposed transaction. The SBA must take care to ensure that the guarantor's position is not improved at the expense of SBA, or that a possible loss to the guarantor is not passed on to the Agency. The guarantor should not be permitted to substitute SBA for his or her ownership position
(6) Evaluation of substitute guarantors. Before the SBA can recommend accepting a substitute guarantor in place of the original, the SBA will analyze/compare the values of the guarantors. The borrower must furnish personal financial statements and any other information satisfactory to the approving official.
If you can make it through the SBA gauntlet it is possible to be released from your guarantee. If you are facing this or other SBA loan problems, please contact us at 888-756-9969 for a consultation.
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.
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.
Clients personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
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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