Discover how proper documentation can secure SBA loan forgiveness. Expert tips from seasoned SBA loan attorneys for successful business debt relief.
Book a Consultation CallIn the complex landscape of Small Business Administration (SBA) loans, the pathway to forgiveness can seem fraught with obstacles. At Protect Law Group, we understand the nuances of navigating these challenges and emphasize the critical role of proper documentation. As your dedicated SBA loan attorneys, we are here to guide you through the intricacies of securing your business debt relief with precision and professionalism.
The first step towards achieving SBA loan forgiveness is a thorough understanding of the criteria set forth by the SBA. It's not merely about meeting the loan's use requirements; it's about meticulously documenting every related transaction. Proper documentation serves as the foundation of your forgiveness application, demonstrating compliance with SBA guidelines. Our SBA loan lawyers are adept at helping clients identify and compile the necessary documents, ensuring that every qualifying expense is accounted for and substantiated.
Organizing your financial records is more than a best practice; it's a strategic move in your forgiveness application process. Detailed records, including bank statements, invoices, and payroll reports, are indispensable. They not only support your forgiveness claim but also prepare you for any audits by the SBA. Our team of SBA lawyers specializes in assisting clients with the organization and review of their financial documents, ensuring that your submission is both comprehensive and compliant.
The landscape of SBA loans and forgiveness programs is ever-evolving, with legislation and guidelines subject to change. Keeping abreast of these changes and understanding their implications on your forgiveness eligibility is crucial. Protect Law Group stays at the forefront of legislative developments, providing our clients with timely updates and strategic advice on adjusting their documentation practices accordingly.
Perhaps the most significant advantage of enlisting an SBA loan attorney from Protect Law Group is the professional advocacy and representation we provide. Navigating the SBA forgiveness process can be daunting, but you don't have to do it alone. Our attorneys are authorized to represent federal debtors nationwide, offering expert guidance every step of the way — from preparing your application to addressing any challenges that arise during the review process.
Securing SBA loan forgiveness is a detailed and demanding process, emphasizing the importance of proper documentation. At Protect Law Group, we are committed to offering unparalleled support and expert representation to small business owners seeking debt relief. If you're navigating the complexities of SBA forgiveness, let our experienced SBA loan lawyers guide you toward a successful resolution. Contact us today to learn more about how we can assist you in securing the financial relief your business deserves.
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.
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.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
Client’s small business obtained an SBA 7(a) loan for $150,000. He and his wife signed personal guarantees and pledged their home as collateral. The SBA loan went into default, the term or maturity date was accelerated and demand for payment of the entire amount claimed was made. The SBA lender’s note gave it the right to adjust the default interest rate from 7.25% to 18% per annum. The business filed for Chapter 11 bankruptcy but was dismissed after 3 years due to its inability to continue with payments under the plan. Clients wanted to file for Chapter 7 bankruptcy, which would have been a mistake as their home had significant equity to repay the SBA loan balance in full as the Trustee would likely seize and sell the home to repay the secured and unsecured creditors. However, the SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection to the SBA. Clients then received the SBA Official 60-Day Notice and hired the Firm to respond to it and negotiate on their behalf. Clients disputed the SBA’s alleged balance of $148,000, as several payments made to the SBA lender during the Chapter 11 reorganization were not accounted for. To challenge the SBA’s claimed debt balance, the Firm Attorneys initiated expedited discovery to obtain government records. SBA records disclosed the true amount owed was about $97,000. Moreover, because the Clients’ home had significant equity, they were not eligible for an Offer in Compromise or an immediate Release of Lien for Consideration, despite being incorrectly advised by non-attorney consulting companies that they were. Instead, our Firm Attorneys recommended a Workout of $97,000 spread over a lengthy term and a waiver of the applicable interest rate making the monthly payment affordable. After back and forth negotiations, SBA approved the Workout proposal, thereby saving the home from imminent foreclosure and reducing the Clients' liability by nearly $81,000 in incorrect principal balance, accrued interest, and statutory collection fees.
.jpg)
