If your application for PPP loan forgiveness is denied by the SBA you have appeal rights. Learn more about how to assert your rights to an appeal.
Book a Consultation CallPPP Forgiveness Appeal
You will have filed your application to forgive your PPP loan. Unfortunately, the lender denied your forgiveness application. What if your loan isn't forgiven in full? You will have to repay any amount of the PPP loan at a 1% interest over a 5 year term. However, loan payments will be deferred for six months but will start incurring interest immediately. Moreover, PPP loans have no fees and no prepayment penalties. Nevertheless, you can appeal the decision.
You can only have a decision by the SBA reviewed. Therefore, you must request a review by the SBA within 30 days of the lender's decision. If the SBA denies after review, you can proceed to an appeal. Furthermore, you can appeal based on several grounds as follows:
If the SBA based its denial on one of these factors you can appeal the decision.
You file your appeal with the SBA's Office of Hearings and Appeals or OHA. Thereafter, the OHA assigns your case to an administrative law judge (ALJ). In a nutshell, an ALJ presides over administrative hearings with the government. Furthermore, the SBA will appoint an attorney to represent its interests in the appeal. As such, you should also have experienced legal representation advocating for your interests.
You only have a short time to file your appeal. As such, you must file your appeal within 30 calendar days after your receipt of the final SBA loan review decision. Alternatively, you only have 30 days from your notification by the lender of the final SBA loan review decision. Keep in mind, the deadline starts running from whichever notification you receive first.
In order to successfully appeal, you must prove that the SBA based its loan review decision on clear error of fact or law. Furthermore, you have the burden of proof. To that end, you must show such error by a preponderance of the evidence.
To meet your burden of proof, you will need to submit various documents described by SBA rules. Moreover, you will have to include a legal brief showing how the facts and law prove the SBA made an error.
Our attorneys have the experience to assertively represent you in front of the OHA. We have argued scores of appeals on behalf of our clients. Contact our offices today to set up your consultation with one of our attorneys.
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.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
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