SBA 7a loans are a great way to finance an organization and options are great for businesses. Learn about the different types and eligibility.
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SBA 7a loans for your business can make the difference between keeping your business afloat or losing it. SBA7a loans were created for that reason.
No one wants to see you lose the business you dreamed of and worked hard to obtain. You now need an SBA 7a loan but can't figure out how to get one. You might have an SBA 7a loan already and need to modify it.
SBA 7a loans have eligibility requirements, which you can find more information and legal services on what options you have in SBA 7a loans.
If you are going to deal with an SBA small business loan it's important to understand what it is. An SBA7a loan offers you a finance option guaranteed by the Small Business Administration. The reason the SBA loans are so popular and needed by many small businesses is important to understand. The SBA loans reduce the risk on the part of any lender and are also guaranteed by the Small Business Administration.
Its basic creation was built for businesses that cannot find other or more traditional loans. You can then use the loan with the SBA loan guarantee for whatever your small business needs to succeed. Frequently it is for starting up a small business, getting an influx of cash in a business a bit stagnant or other varied reasons.
A few of the best things about an SBA small business loan is;
There are nine types of SBA small business loans, and we are going to go over them all so you have the most relevant information on what an SBA small business loan can offer you.
Ther nine types of SBA small business loans include:
Each of them offers the small business owner something unique, and we are going to go over the benefits and eligibility terms for these small business loans below.
These are the typical small business loans many people know and use with the SBA. But we are going to tell you about some other ones you may not know about.
The SBA recognizes you may need capital for your business in a hurry. They also understand you and your business are at a make or break time. So they created the 7(a) Express Loan.
The SBA also has some SBA loans designed for a designated group of people to help them ope or sustain their businesses.
When you are considering a loan from the SBA, you need to understand they are flexible and provide you a lower payment. Most of the time interest rates range between 2.25% - 4.75%. The interest rates are lower than conventional loans and the SBA 7a loans are easier to get.
You can also use the loan funding for projects that help your business grow and develop. You won't have balloon payments to worry about, and will have money to cover soft costs. But your business must qualify as a small business for all the SBA loans. The government has a 'small business' definition you must meet, and any mid-sized businesses won't meet the guidelines.
If you are in business and already worked through the SBA application terms but are having issues with your current SBA loan, our experienced SBA attorneys can help. Our attorneys are trained in six core SBA disciplines
The six basic services are:
Our legal expertise provides negotiated and settled SBA debt. But our legal team provides so much more with most SBA issues or concerns you have.
Reach out to us today if you need your SBA processes resolved. When you are dealing with the SBA, the sooner you begin your negotiations, the better. Don't let the stress of an SBA loan drive your business in circles. We can show you how your business path can move forward once again.
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.
Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.
As part of the business closure review and audit, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability for the owner/officer.
This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA Offer in Compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
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