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.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
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.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
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