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 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.
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.
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.
Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
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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