Want to Settle SBA Loan Debt? Here's How
If you want to settle SBA loan debt but don't know how, then the answer is simple. Click here for your ultimate guide today!
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.
Clients' 7(a) loan was referred to Treasury's Bureau of Fiscal Service for enforced collection in 2015. They not only personally guaranteed the loan, but also pledged their primary residence as additional collateral. One of the clients filed for Chapter 7 bankruptcy thinking that it would discharge the SBA 7(a) lien encumbering their home. They later discovered that they were mistakenly advised. The Firm was subsequently hired to review their case and defend against a series of collection actions. Eventually, we were able to negotiate a structured workout for $180,000 directly with the SBA, saving them approximately $250,000 (by reducing the default interest rate and removing Treasury's substantial collection fees) and from possible foreclosure.
Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency. After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
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