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Steps For Reviewing The SBA Offer In Compromise

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Steps For Reviewing The SBA Offer In Compromise

Local attorneys help business owners when they are facing a possible default on their loans. When defaulting, this indicates that the lender has the legal right to start the foreclosure process. This process allows them to take possession of the property used as collateral and sell it at auction. A SBA Offer in Compromise is an opportunity to prevent the lender from taking these steps.

The First Step After Notification

The small business owner receives a SBA demand letter once they have defaulted on their loan. The default indicates that the loan is at least ninety-days delinquent. It also allows the lender to acquire full payment of the loan. Once the borrower has acquired a SBA loan default, they should approach an attorney. The attorney could help them find a more reasonable solution instead of foreclosure.

Discussing the Possibilities with a Lender

The attorney discusses the possibilities with the lender. Together they determine the most fair and reasonable percentage to settle the loan default. This percentage could be as much as fifty percent of the total value required. By submitting this offer to the lender, the borrower could keep their business operating and reduce the financial impact of settling the debt.

The attorney prepares the documentation for the offer. They submit the documents to the lender. Upon acceptance, the lender provides the borrower with the correct documents for finalizing this process. Once the offer is accepted the SBA loan foreclosure stops.

However, if the property was used as collateral to secure the loan the lender may collect it as well. The attorney should review the terms of the settlement with the borrower to identify any clauses that affect ownership of the property. If possible, the attorney may negotiate a settlement that allows the business owner to keep the property based on how much equity they have accumulated.

Local attorneys could help small business owners avoid foreclosure through a settlement offer. This offer helps them to prevent major damage to the business owner's credit. It could also help the business owner avoid the requirement of paying the full outstanding balance of the loan. Business owners who need to acquire help with a default or need a Tax Offset Program should contact an attorney now.

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.

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

$58,000 SBA 7A LOAN - AWG HEARING DEFENSE

Client personally guaranteed SBA 7(a) loan balance of $58,000.  Client received Notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings.  We represented client at the Hearing and successfully defeated the AWG Order based on several legal and equitable grounds.

$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.

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 7(a) loan balance of over $150,000.  Business failed and eventually shut down.  SBA then pursued client for the balance.  We intervened and was able to present an SBA OIC that was accepted for $30,000.

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