The Do's and Don'ts of Getting a Business Loan for Your Small Business
If you're interested in getting a business loan for your small business, there are some important do's and don'ts you'll need to keep in mind.
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.
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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