SBA Microloans Available Online
If you have questions about any SBA related issues, including the tax offset program, SBA loan foreclosure, or responding to an SBA demand letter, call us.
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.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
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.
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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