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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.

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

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.

$150,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

$150,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

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.

$324,000 SBA 7A LOAN - SBA OHA LITIGATION

$324,000 SBA 7A LOAN - SBA OHA LITIGATION

Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase.  The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.

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