Many small businesses rely on SBA loans, or Small Business Administration loans, in order to get off the ground, provide funding for expansion costs, and help with working capital needs. SBA loans are backed by the federal government, making them very popular amongst small business owners. Protect Law Group is a SBA debt resolution attorney. Below, we'll offer tips to repay your SBA loan. Get in touch today!
The first step to repaying your SBA loan is to ensure you understand the terms of your loan. This includes knowing when your payment is due each month, the payment amount, and the methods of payment accepted by your lender.
One of the worst things you can do is ghost your SBA lender if you can't pay. This sends a message that you have no intentions of paying and will make them less likely to work with you on future loan payments.
Business owners are busy people, trying to run their business, make payroll, and stay compliant with all applicable laws. By setting up automatic payments for your SBA loan, you can rest assured you won't miss a payment and fall behind or incur late fees.
If you are struggling to make your SBA loan payments, one great option is to see if you qualify for a business loan refinance. This is a great way to possibly lower your interest rate and your payment amount, helping to make on-time payments moving forward.
Protect Law Group is a California-based SBA attorney law firm that is passionate about helping small business owners with their SBA loan default status. If you need help with your SBA loans, get in touch 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.
Clients personally guaranteed an SBA 7(a) loan balance of $65,000 for their Texas-based business. The SBA loan was paid down to $41,000 before the business failed. The loan was referred to Treasury's Bureau of Fiscal Service. Treasury assessed its collection fees increasing the debt to $66,000. The client received a Notice of Intent to Initiate Administrative Wage Garnishment (AWG) Proceedings. The Firm represented the client at the hearing and successfully challenged the legal enforceability of the debt. Based on our legal arguments, the Hearing Officer issued a Decision and Order terminating collection of the $66,000 debt by operation of law.
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.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.
After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.
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