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The Role of Legal Professionals in SBA Offers in Compromise: How We Can Help

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."

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The Role of Legal Professionals in SBA Offers in Compromise: How We Can Help

The Role of Legal Professionals in SBA Offers in Compromise: How We Can Help

In 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.

Understanding SBA Offers in Compromise

What is an SBA Offer in Compromise?

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.

Eligibility Criteria for SBA Offers in Compromise

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.

The Benefits of SBA Offers in Compromise

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.

The Role of Legal Professionals in SBA Offers in Compromise

Expertise in Navigating the Complex SBA Process

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.

Negotiating with the SBA

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.

Protecting Your Rights and Interests

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.

Developing a Comprehensive Offer Package

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.

How We Can Help

Our Commitment to Your Success

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.

Tailored Solutions

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.

Transparent Communication

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.

Conclusion

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.

FAQs

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.

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

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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

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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

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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.

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

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.

$505,000 SBA 7A LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

$505,000 SBA 7A LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

Clients borrowed and personally guaranteed an SBA 7(a) loan.  Clients defaulted on the SBA loan and were sued in federal district court for breach of contract.  The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan.  We were subsequently hired to intervene and aggressively defend the lawsuit.  After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.

$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. 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 we also save him approximately $227,945 over the term of the workout.

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