If you obtain an SBA loan - specifically a 7(a) loan, you can use the loan proceeds to help finance a great variety of business expenses.
Book a Consultation CallIf you obtain an SBA loan—specifically a 7(a) loan—you can use the loan proceeds to help finance a great variety of business expenses. Additionally, it's important to note that the 7(a) loan is one of the most flexible loan programs offered by the SBA, catering to businesses of various sizes and industries. However, there are a few restrictions. For instance, loan funds can’t be used to purchase an asset to maintain for its potential increased value or to reimburse an owner for the money they previously put into their business.
Basic uses for 7(a) loan proceeds include:
To pay operational expenses, accounts payable and/or to purchase inventory;
To pay contract performance, construction financing, and exporting;
To purchase equipment, machinery, furniture, fixtures, supplies, or materials;
To purchase real estate, including land and buildings;
To construct a new building or renovate an existing building;
To establish a new business or assist in the acquisition, operation, or expansion of an existing business;
To refinance existing business debt, under certain conditions.
Notably, the 7(a) loan program also includes specialized options to meet unique business needs, such as loans for veterans, minority-owned businesses, and rural enterprises. This video explains the 7(a) loan more. If you're in default on your 7(a) loan or are in danger of defaulting, you need to contact an SBA attorney immediately.
Get a case evaluation here or call 888-756-9969. Understanding your rights and responsibilities as a borrower can significantly impact the outcome of your financial situation, so seeking legal advice early on is vital. Don't face the SBA alone; get qualified SBA assistance from an SBA attorney today.
https://www.youtube.com/watch?v=TPNnRVgLSBs
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 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.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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