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.
Book a Consultation CallThe attorneys in our office want to help you figure out your SBA problem. No matter how difficult your circumstances may seem, the right lawyer can assist you. We understand that you probably have questions regarding a wide range of issues, including how to respond to an SBA demand letter, what SBA loan foreclosure actually entails, and what a tax offset program is. One of our attorney specialists can tell you about all of these topics and more.
In recent SBA news, Golden Pacific Bank launched an automated nationwide program to make Small Business Administration microloans using their the Smartbizloan.com loan portal. The portal allows small businesses to apply for SBA loans as small as $5,000, which is an amount too small for most banks to consider.
The borrower fills out the online form and verifies to the lender that the bank may pull financial, tax and credit records on the company. The automated program compiles the data and grades the loan. A bank loan committee still oversees final approvals.
A loan that gets approved can be funded in days, she said. The bank is an SBA preferred lender, which means it can approve its own loans.
The loans can be as small as $5,000 and as high as $150,000 and bank officials identifying the sweet spot being under $25,000. If you are looking for a loan over $25,000 you will be required to pledge collateral. The term of the loan is 10 years, but as with all SBA loans, there is no penalty for early pre-payment.
In a pilot program since the end of last year, the SBA SmartBiz loan has funded $1 million so far through about 60 loans.
Borrowers have been across the country and in all kinds of business including loans to manufacturers of wild bird feed and yoga clothes to bookkeepers and other professionals.
The loan cannot be used to launch a business. The business seeking the loan has to have been in business with financial records for at least a year.
These mircoloans are the size of loan that many banks don’t want to make, as it takes as much time as it does to make a larger loan, and yet it offers very little income to the bank.
Many businesses that need small amounts of money end up using credit cards, but credit cards do not build up a credit profile and they are expensive.
If you have any questions about related to the Department of Treasury's tax offset program, SBA loan foreclosure, or how to respond to an SBA demand letter, please contact us at 888-756-9969 for a case evaluation.
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.
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.
Client received the SBA's Official 60-Day Notice for a loan that was obtained by her small business in 2001. The SBA loan went into default in 2004 but after hearing nothing from the SBA lender or the SBA for 20 years, out of the blue, she received the SBA's collection due process notice which provided her with only one of four options: (1) repay the entire accelerated balance immediately; (2) negotiate a repayment arrangement; (3) challenge the legal enforceability of the debt with evidence; or (4) request an OHA hearing before a U.S. Administrative Law Judge.
Client hired the Firm to represent her with only 13 days left before the expiration deadline to respond to the SBA's Official 60-Day Notice. The Firm attorneys immediately researched the SBA's Official loan database to obtain information regarding the 7(a) loan. Thereafter, the Firm attorneys conducted legal research and asserted certain affirmative defenses challenging the legal enforceability of the debt. A written response was timely filed to the 60-Day Notice with the SBA subsequently agreeing with the client's affirmative defenses and legal arguments. As a result, the SBA rendered a decision immediately terminating collection of the debt against the client's alleged personal guarantee liability saving her $50,000.
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.
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