SBA Loan Default - What Fees Can A Bank Charge You
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as 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.
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 resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.
As part of the business closure review and audit, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability for the owner/officer.
This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA Offer in Compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.
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.
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