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SBA Offer in Compromise and Other Legal Services

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SBA Offer in Compromise and Other Legal Services

The Small Business Administration (SBA) is an arm of the federal government best know for loan programs. Their loans are obtained more easily when you have less than perfect credit. They are also repayable over a longer period of time than most standard business loans from a bank or credit union. However, to counterbalance these advantages, the federal government can be very strict about repayment plans. As a result, SBA loan default and even SBA loan foreclosure can be commonplace. Studies have shown that, of all of the SBA franchise loans offered between 2003 and 2012 (representing over $1.5 billion), 28% defaulted.

When you receive a SBA demand letter, you may look for an attorney who represents business owners in SBA cases. The following is a list of benefits these attorneys can offer as you seek out appropriate representation.

  • An attorney will first work to protect you and your personal assets. Then, they will focus on appealing the SBA's decision of default or foreclosure. That way, they will work to give you one of two outcomes: the time to start paying again or a way to close the business while remaining financially intact.
  • Your lawyer will employ a series of tactics to stall foreclosure or allow you to start catching up on payments. These include requesting deferment, applying for administrative representation with the SBA, litigation, negotiation, a case brought before the SBA Office of Hearings and Appeals, and an SBA Offer in Compromise (SBA OIC).
  • This last option involves coming to an agreement with the SBA in which partial or reduced payments are made in order to settle the debt. It involves a complicated application process that an SBA case attorney will understand. During the process, your attorney may be able to forestall a SBA loan foreclosure on your business property or home.
  • The goal is to enable you to pay off part or all of your loan. An attorney may encourage you to apply for the SBA's Tax Offset Program, in which your yearly tax refunds are used as repayment. This eliminates the hassle and stress of making monthly payments.
  • If you are not having SBA problems, many attorneys can help you get your affairs in order so you can apply for an SBA loan.

Many firms that are employed for SBA cases are willing to work anywhere in the country. Keep this in mind when selecting the appropriate legal counsel.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

$166,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

$166,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.

Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.

The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.

The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 7(a) loan balance of over $150,000.  Business failed and eventually shut down.  SBA then pursued client for the balance.  We intervened and was able to present an SBA OIC that was accepted for $30,000.

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