In today's complex business landscape, many entrepreneurs and small business owners face financial challenges that can lead to overwhelming debt. One solution offered by the Small Business Administration (SBA) is the "Offer in Compromise."
Book a Consultation CallIn today's complex business landscape, many entrepreneurs and small business owners face financial challenges that can lead to overwhelming debt. One potential solution offered by the Small Business Administration (SBA) is the "Offer in Compromise" program. This article delves into the intricacies of SBA Offers in Compromise and highlights the invaluable role legal professionals play in helping businesses navigate this process successfully.
An SBA Offer in Compromise is a debt settlement program designed to assist personal guarantors in resolving their outstanding SBA loan debt for less than the full amount owed. It provides a lifeline to businesses facing financial hardship and is particularly relevant in today's economic climate.
To qualify for an SBA Offer in Compromise, businesses must meet specific criteria outlined by the Small Business Administration. These criteria often include demonstrating financial distress, an inability to repay the full debt, and a willingness to cooperate with the SBA.
SBA Offers in Compromise offer several advantages, including debt reduction, avoiding legal action, and the opportunity for a fresh financial start. These benefits make it an attractive option for business owners in dire financial straits.
Navigating the SBA's Offer in Compromise program can be a daunting task. Legal professionals with experience in this area can provide invaluable guidance, ensuring that businesses meet all eligibility requirements and adhere to the necessary legal procedures.
One of the most critical aspects of the SBA Offers in Compromise process is negotiating with the SBA itself. Legal professionals are well-versed in negotiation strategies and can work to secure the best possible settlement terms for their clients.
Legal professionals understand the legal rights and protections available to businesses under the SBA Offers in Compromise program. They can advocate on behalf of their clients, ensuring that their rights are protected throughout the process.
Preparing a compelling offer package is crucial to a successful SBA Offer in Compromise. Legal professionals have the expertise to gather and present all required financial documentation and persuasive arguments to support their clients' cases.
At Protect Law Group, we are dedicated to helping business owners overcome financial challenges and achieve a fresh start. Our team of experienced legal professionals works exclusively with SBA Offers in Compromise and will work tirelessly to secure the best possible outcome for you.
We understand that every person's situation is unique. That's why we provide personalized solutions tailored to your specific circumstances. Whether you owned a small startup or an established enterprise, we have the expertise to assist you.
We believe in open and transparent communication with our clients. Throughout the SBA Offers in Compromise process, we will keep you informed every step of the way, ensuring you understand the progress and potential outcomes.
In conclusion, SBA Offers in Compromise are a lifeline for business owners, offering the hope of financial recovery and a fresh start. Legal professionals play a pivotal role in guiding businesses through this complex process, ensuring eligibility, protecting rights, and negotiating favorable terms.
If you are facing financial hardship and considering an SBA Offer in Compromise, don't go it alone. Seek the expertise of experienced legal professionals who can navigate this challenging terrain with you.
What is the primary goal of an SBA Offer in Compromise?
The primary goal of an SBA Offer in Compromise is to help business owners in financial distress settle their SBA loan debt for less than the full amount owed, providing them with a fresh start.
Who is eligible for an SBA Offer in Compromise?
Business owners who signed a personal guarantee for a SBA loan and are facing financial hardship, unable to repay their SBA debt in full, and willing to cooperate with the SBA may be eligible for an Offer in Compromise.
How can legal professionals assist with SBA Offers in Compromise?
Legal professionals provide expertise in navigating the complex SBA process, negotiating with the SBA on behalf of businesses, protecting clients' rights, and developing persuasive offer packages.
What are the key benefits of pursuing an SBA Offer in Compromise?
The benefits include debt reduction, avoiding legal action, and the opportunity for a fresh financial start.
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.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against our client’s monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy), but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
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