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The Broad Scope of an SBA Offer in Compromise

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The Broad Scope of an SBA Offer in Compromise

For many years, the Small Business Administration (SBA) has been helping individuals and small businesses acquire loans for entrepreneurial enterprises. Many small businesses are in business today thanks to the SBA. Because the SBA is a government organization, they have a broad reach and many banks, both national as well a regional, are authorized to offer these loans. However, if a business were to fail before an SBA loan is repaid, collection efforts can be significant. Many times, a law practice that understands things such as an SBA Offer in Compromise can be helpful.

When a business fails prior to fully repaying an SBA loan, the former business owner may start to panic when they first receive an SBA demand letter. The reason for this is often times, an SBA loan may require a certain level of collateral in order to receive the funds. Many failed business owners may be looking at the possibility of losing their property, such as cars, valuable jewelry or even their home.

Fortunately, there are ways of avoiding things such as an SBA loan foreclosure and the seizing of person property or assets. However, it all starts with enlisting the help of a law firm that deals directly in SBA default issues.

Many times, an Offer in Compromise can be made and this sort of arrangement is rather sweeping. For example, an Offer in Compromise can help reduce a persons debt to the SBA significantly. In some cases, the remaining balance can be cut by over 50%. In some cases, an Offer in Comprise can include an affordable repayment plan. This can help prevent foreclosure or assets being seized. In addition, through a Tax Offset Program, any income tax refunds the guarantor of the loan may receive can be turned over to the SBA for default loan payments.

SBA loan default may not be the ideal thing, but it does happen. However, there is no reason to panic. With the help of a law firm advocating for you, the many avenues to reduce the amount you owe as well as the options in an Offer in Compromise for repayment, things may not be as bad as you first thought. If you are facing a possible default on your SBA loan, or it has already been defaulted on, you need legal advice today.

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.

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency.  After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$337,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Clients personally guaranteed an SBA 504 loan balance of $337,000.  The Third Party Lender had obtained a Judgment against the clients.  We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.

$150,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

$150,000 SBA 7A LOAN - NEGOTIATED WORKOUT AGREEMENT

The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.

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