Small businesses that are facing financial difficulties need help through legal services. These opportunities could prevent them from losing their business location and possibly their machinery used by their company. When serious delinquencies arise, these businesses have the opportunity to acquire an SBA Offer in Compromise
After the company defaults, the business owner could face foreclosure. This legal process allows the lender to seize the property financed by the loan. If the process continues, the lender will auction the property off and collect through the sale. If they don't recover the full balance of the loan, the lender could file a claim against the borrower through the court. For this reason, the borrower must take action as soon as an SBA loan default begins.
A loan default gives the lender the right to collect the collateral immediately. Once they collect the collateral, the foreclosure or repossession of the property appears on the borrower's credit report. This listing could lead to a reduction in the credit score. A lower credit score could prevent the borrower from starting new lines of credit. This includes new loans to recover from any financial losses. Once the borrower receives the SBA demand letter these circumstances are immediate.
The first step is to approach an attorney. The attorney evaluates the SBA loan documentation to determine if the terms of the loan are predatory. They determine if it is possible to acquire a loan modification first. If this action could settle the issue, the attorney continues with the process. However, if it is necessary to arrive at a settlement, the attorney submits the application for the offer in compromise to prevent an SBA loan foreclosure.
Small business owner evaluates opportunities to avoid foreclosure by consulting an attorney. An attorney could help them evaluate opportunities to settle their SBA loan debt. Among these opportunities are loan modifications and an offer of compromise. These actions reduce the negative impact of a default and prevent further financial damage for the business owner. Any owners who need a Tax Offset Program or additional help should contact an attorney now.
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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
Clients personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
Client's small business obtained an SBA COVID EIDL for $301,000 pledging collateral by executing the Note, Unconditional Guarantee and Security Agreement. The business defaulted on the loan and the SBA CESC called the Note and Guarantee, accelerated the principal balance due, accrued interest and retracted the 30-year term schedule.
The loan was transferred to the Treasury's Bureau of Fiscal Service which resulted in the statutory addition of $90,000+ in administrative fees, costs, penalties and interest with the total debt now at $391.000+. Treasury also initiated a Treasury Offset Program (TOP) levy against the client's federal contractor payments for the full amount each month - intercepting all of its revenue and pushing the business to the brink of bankruptcy.
The Firm was hired to investigate and find an alternate solution to the bankruptcy option. After submitting formal production requests for all government records, it was discovered that the SBA failed to send the required Official 60-Day Pre-Referral Notice to the borrower and guarantor prior to referring the debt to Treasury. This procedural due process violation served as the basis to submit a Cross-Servicing Dispute to recall the debt from Treasury back to the SBA and to negotiate a reinstatement of the original 30-year maturity date, a modified workout, cessation of the TOP levy against the federal contractor payments and removal of the $90,000+ Treasury-based collection fees, interest and penalties.
.jpg)
