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SBA SOP 50 51 3- Classifying Loans in Liquidation

Blog article by expert SBA workout attorneys from Protect Law Group, APC regarding SBA loans classified in liquidation status and how lenders begin the process

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SBA SOP 50 51 3- Classifying Loans in Liquidation

SBA SOP 50 51 3 is a very important standard operating procedure which needs to be understood by SBA debtors looking to resolve their SBA guaranteed debt.  We will be reviewing and commenting on this SBA SOP through a series of blog articles to give debtors knowledge as knowledge is power.

A.      When Loans Must Be Classified in Liquidation Status

An SBA Loan must be classified in liquidation status if any of the adverse events listed below occur:

  1. The loan is more than 60 days past due with no prospect of a deferment or a workout;
  2. A Third Party Lender or another senior lienholder has initiated a foreclosure action against collateral securing the loan;
  3. A lawsuit, which will adversely affect repayment of the SBA Loan, has been initiated against an Obligor;
  4. An Obligor has filed a voluntary petition in bankruptcy, or an involuntary petition in bankruptcy has been filed against an Obligor;
  5. The Borrower's business has been shut down or abandoned and the Obligors have not made other arrangements to repay the SBA Loan;
  6. Substantial collateral has been abandoned or is in danger of disappearing, losing its value, or being stolen;
  7. A receiver has been appointed by a court, or some other action has been initiated to liquidate the collateral or an Obligor's assets; or
  8. Any other circumstances that could substantially and adversely affect repayment of the SBA Loan.

B. When Loans Should Be Removed from Liquidation Status

SBA Loans should be removed from liquidation status and returned to regular servicing after three consecutive timely payments have been made pursuant to a written workout agreement, bankruptcy plan, reaffirmation agreement, assumption or other written agreement that cures the default.

Think of us - Protect Law Group, APC - as your "go to" team for whatever needs you may have in the SBA loan problem resolution world.

We can provide professional help at specific SBA touch points upon default from loan restructuring to loan problem defense & negotiation liquidation and appeals to the SBA Office of Hearing & Appeals. To learn more about our SBA representation services, go to www.SBA-Attorneys.com or call us at 888-756-9969 to speak to one of our experienced SBA Workout Attorneys.

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.

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

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.

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 504 loan balance of $375,000.  Debt had been cross-referred to Treasury at the time we got involved with the case.  We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

$300,000 SBA 7A LOAN - SBA OIC TERM SETTLEMENT

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.

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