Business owners who face financial difficulties could also face devastating effects. These effects could lead to foreclosure of their commercial property. For these business owners, this could cause damaging effects on their credit and prevent them from starting new ventures in the future. A local attorney could help them request a SBA Offer in Compromise today.
This options allows the attorney to negotiate a settlement offer. The settlement offer is considerably lower than the total loan value. This makes it easier for the business owner to settle the debt. Since this action ensures recovery of the loan, most lenders will accept the offer based on the guarantee to pay this value in full. Business owners who wish to acquire this opportunity should take action as soon as they receive the SBA demand letter.
Before a SBA loan foreclosure, the business owner should hire an attorney. The attorney helps them to calculate a fair settlement. The value could equate to up to fifty percent of the total loan value. When this request is submitted to the lender, the borrower should provide documentation of their income to prove their ability to pay. If they choose to sale their commercial property, they could provide documentation about the sale to show their ability to pay the debt.
Business owners who are facing the effects of a loan default may also have overdue taxes. When this is the case, they also face seizure through the IRS of their assets. An attorney could also help them to enter into a Tax Offset Program. This could help them to acquire a settlement for their overdue taxes and eliminate these debts altogether. It is possible for them to acquire an installment plan to pay off overdue tax payments.
Business owners who experience financial difficulties could face defaults and foreclosure. These effects could present a damaging effect on their credit and disqualify them for more government-backed loans in the future. Business owners who are facing a SBA loan default should contact an attorney today to acquire more information about their options.
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.
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.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) default in the amount of $150,000 on behalf of Illinois-based client. After the business permanently closed due to the economic impacts of the pandemic, the owners faced potential personal liability if the business collateral was not liquidated properly under the SBA Security Agreement.
We guided the client through the SBA’s Business Closure Review process, prepared a comprehensive financial submission, and negotiated directly with the SBA to release the collateral securing the loan. The borrower satisfied their collateral obligations with a payment of $2,075, resolving the SBA’s security interest.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’s ureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
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