The transcript of the video follows below for further review.
Is your business loan secured by the Small Business Administration (SBA)? Are you having trouble repaying it? You might think that you don't have any other option but trying to survive.
Yet, that isn't true. You might be eligible for other options without falling into default. An SBA attorney can help you navigate this process and tell you more about your options.
Have you consulted an attorney? Not sure what they can do for you? We'll tell you all about what an SBA lawyer can do for you.
Keep reading to learn more!
So you decided to pursue your dream and open your business. To make it happen or grow, you took a business loan. An SBA secured loan provided you the funding you needed to make it happen.
Your business kept growing but your clients' payment terms are putting you in a tight spot. Your business' monthly income might not be the amount you need to stay current. Don't know how you can make payroll and pay your SBA loan?
You aren't alone in this. Many business owners arrive at this crossroads every day. You might be thinking there isn't a way you can prevent defaulting on your SBA loan
But an SBA lawyer can help you get out of this rabbit hole. They can go over your case and options. Your options will vary on a case by case basis.
You might be considering defaulting on your loan. But, you should keep in mind that the SBA default statute of limitations won't let you off the hook that easily. These loans are allowed to collect 6 years after your last payment.
It doesn't matter in what state you live because the state's statute of limitations doesn't apply to these loans. When you default, SBA has the option to send it to the Department of Treasury. They can collect beyond the established 6 years statute of limitations.
This may vary depending on your loan and collateral. An SBA lawyer can help you find the right option for your case. Here are some ways the right attorney can help you with your SBA loan.
Now you know that if you default on an SBA loan, you won't be able to get rid of it as soon as you expected. You might've received a letter from SBA offering to review your debt on an administrative hearing. You may think it's a simple thing.
But, if you don't handle the situation right it can turn into a nightmare. An SBA lawyer can investigate your case and discover evidence that can help you. If you attend the hearing without the right evidence, you'll be losing the case from the get-go.
You shouldn't underestimate an SBA hearing because it's an administrative process. Your hearing is as valid and important as any day in court. That's why you need to be as ready as you can be.
An SBA lawyer can represent you in the hearings and appeals. This will give you the biggest chance of getting the best outcome.
If you're considering appealing your SBA decision, you should consider using a specialized SBA OHA Appeal attorney. Their experience will give you the upper hand in your appeal. Because they know what's the best approach for SBA to accept your appeal.
Sometimes debtors may not be considered for an offer in compromise because their monthly income or liquid assets value is too high. Here your best option would be negotiating an SBA repayment plan. An SBA lawyer can negotiate your plan if SBA refers your case to the Department of Treasury.
The length for your repayment plan can't be more than 3 years. SBA deems this term reasonable time to pay the claimed debt.
These negotiations aren't easy. Don't fall into trying to negotiate the plan yourself. That's why it's recommended you hire a lawyer to represent you during the process.
When you receive an SBA Offer in Compromise, they're offering you an off-court settlement. To arrive at this agreement, the borrowers and guarantors need to agree.
An SBA lawyer may help you negotiate this settlement and obtain the best outcome. Also, they can tell you if this is your best option.
If your business is suffering a momentary slump, a loan deferment or modification might be your best option. If you obtain the first, you'll stop making payments during 3, 6, 9 or 12 months. SBA approves this option to businesses that prove a short-term financial difficulty.
You may be eligible for a loan modification if your business is generating revenue but falling short in their payments due to the loan terms. Most of the time, they offer this option for SBA 504 loans. An SBA lawyer can help you obtain these short and long-term solutions.
When you default on a secured SBA loan, the property you pledge will have an SBA lien. Many debtors believe that filing bankruptcy will eliminate it. Yet, this process may only discharge your debt.
There are certain situations when SBA may discharge the lien on your property. Here's where your SBA lawyer may negotiate an SBA Lien Release. An example is when a deceased spouse was the sole guarantor of the loan.
In this process, you could offer to buy back your property from SBA. They'll take several factors into consideration. An SBA lawyer can give you a better idea of the possibility of recovering your property.
Yes, an SBA attorney can help you with your SBA secured loan. Your options will depend on the type of loan you have. But, an SBA lawyer can go over your loan paperwork and discuss your options.
Also, they can negotiate to come to an agreement with your lender. SBA loans don't work the same as other loans. That's why you should hire an expert to help you navigate the process.
If you hire an SBA lawyer, you'll be able to obtain the best outcome. Remember that the right attorney will take their time to analyze your case. They should go over your options and recommend the best approach.
Are you having problems making payments on your SBA loan? Want to learn more about your options? We can help!
Contact us to schedule your case evaluation 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.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the Treasury at the time we got involved with the case. We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
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