Navigating SBA Offer in Compromise: A Step-by-Step Guide
Dealing with SBA Bankruptcy? A SBA offer in compromise may help get you out of this difficult situation. Protect Law Group is here to help. Find out more today!
No one really wants to fall behind on their business loans. After all, you made a promise to pay back the money after they were willing to lend it to you. Protect Law Group is a California-based SBA loan default attorney who helps small businesses which are having trouble paying back their SBA loan. Learn the difference between a default and a delinquent when it comes to an SBA loan, and call today for a free consultation!
Delinquent is the lender term given to those who are behind on their SBA loan payments. The small business can be behind by merely one day or months — the name doesn't change. However, being delinquent on your SBA loan means that the lender still believes you will pay the loan back.
When your SBA loan enters the default status, this is when the small business fails to meet the terms in the promissory note agreement or they are shirking other responsibilities of the loan's terms. Ultimately, an SBA default status means that the lender believes you are unable to repay your small business loan back.
If you are merely delinquent on your SBA loan, you can work with your lender to get back on track. Some options include making smaller payments, restructuring the SBA loan for you, and waiving late fees.
For the most part, the federal government wants their money back if your SBA loan enters default status. It's at this point that you should reach out to a top-rated SBA attorney in order to help you resolve the matter favorably with your lender.
Protect Law Group has years of experience in helping those whose SBA loan is in default in the state of California. Reach out to one of our SBA default attorneys for a free consultation 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 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 SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
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