SBA Forgiveness: What Small Business Owners Need to Know
With the guidance and support of experienced SBA loan attorneys from Protect Law Group, you can find a concrete path to SBA debt resolution. Learn now.
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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
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.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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