If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

The Difference Between a Default and a Delinquent on an SBA Loan

Book a Consultation Call

The Difference Between a Default and a Delinquent on an SBA Loan

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!

small business owners analyzing finances

What Does Being Delinquent on an SBA Loan Mean?

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.

small business owner closing shop

What Does it Mean to Be in Default on an SBA Loan?

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.

man making a payment over the phone

How to Deal with an SBA Loan that is Delinquent

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.

meeting with an attorney

How to Deal with an SBA Loan in Default

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.

CONTACT PROTECT LAW GROUP TODAY

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!

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

construction accident injury lawyer

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

slip and fall attorney

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

truck accident injury attorney

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.

$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.

$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.  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.

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

$350,000 SBA 7A LOAN - NEGOTIATED STRUCTURED WORKOUT AGREEMENT

Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.

Read more Case Results

Related Content

Read more sba debt articles