What to Expect From the Loan Debt Collection Process
If you're struggling with loan debt, the last thing you need is to be blindsided by collectors. Here's what to expect during the debt collection process.
We provide borrowers with solutions to an SBA loan default and advise clients regarding solutions to SBA loan problems.
Book a Free Consultation CallDealing with the idea that you might be facing an SBA loan default can be terrifying. The SBA attorneys in our office are skilled at helping clients through all of the facets of their situations. We can create an SBA offer in compromise that can end your SBA loan problems. You should never face an SBA loan problem alone. It is important to retain the services of an attorney who can help you through this difficult time in your life. We urge you to read about the services that we have available and to contact us if you need assistance.
The Small Business Administration's newest boss Maria Contreras-Sweet recently provided her vision for economic growth, indicating that the smallest businesses will be the mainstay of a new lending initiative.
Contreras-Sweet unveiled a new program the SBA hopes will get more smaller loans to entrepreneurs, primarily via its 7(a) program. Banks originate the loans and benefit from a federal guarantee against default of up to $5 million.
The SBA has been criticized for making too many larger loans and being less accessible to the smaller borrowers and also minorities and immigrants.
According to recent data, four out of five requests for loans from African and Hispanic Americans are for amounts of $150,000 or less, Contreras-Sweet said. With those statistics in mind, the SBA is introducing a new credit scoring system that will let banks make faster decisions on smaller financing requests, and with less paperwork involved. Moreover, the SBA hopes to increase the number of banks that lend through its guaranteed loan program.
"The time has come to reach out to all of our lending partners on small loans and bring new lenders into the SBA fold," Contreras-Sweet stated in a prepared statement.
New Model for Credit Scoring
The new credit scoring system that the SBA will use derives creditworthiness via personal and business credit.
"The SBA’s total credit score will make it easier and less time-intensive for banks to do business with the SBA," Contreras-Sweet said. "This model is cost-reducing and credit-based. It ensures that risk characteristics--not socio-economic factors--determine who is deemed creditworthy."
"By making the process quicker, cheaper, and more intutiive, these reforms will help existing lenders do more small-dollar lending," Contreras-Sweet said. The new scoring system will be available in July. SBA One will start early in 2015.
If you have a SBA loan that is in default, please contact us today for a FREE consultation at 1-888-756-9969.
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 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.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their home as additional collateral. SBA OIC accepted for $87,000 with full release of lien against home.
Clients borrowed and personally guaranteed an SBA 7a 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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