Protect Law Group's comprehensive services are tailored to assist businesses in resolving SBA loan default issues. Learn more today.
Book a Consultation CallWhen it comes to small business administration loans, facing the possibility of default can be a daunting prospect for any business owner. Protect Law Group understands the complexities associated with defaulting on an SBA loan within an LLC and is dedicated to assisting clients in navigating this challenging situation. Let's delve into what happens if you default on a loan in an LLC and the solutions available to you.
When an LLC defaults on an SBA loan, several key consequences may unfold:
Impact on Personal and Business Assets
One of the primary concerns when defaulting on an SBA loan in an LLC is the potential impact on both personal and business assets. SBA loans are often guaranteed by personal assets, putting them at risk in the event of a default. Protect Law Group's expertise in risk management and asset exemption protection can help mitigate these risks and safeguard your assets.
Legal Ramifications and Debt Repayment
Defaulting on an SBA loan can lead to legal actions and debt repayment obligations. Our team of Federal Agency Practitioners and SBA Attorneys is well-versed in constitutional law, contract law, and federal administrative procedures, ensuring comprehensive representation in negotiations, settlements, or even in SBA Office of Hearings & Appeals proceedings.
Exploring Debt Relief Options
Defaulting on an SBA loan does not necessarily mean the end of the road. SBA debt relief options such as deferment, SBA Offer in Compromise (SBA OIC), and bankruptcy law can provide avenues for resolving the debt burden. Protect Law Group's specialized services encompass these debt relief strategies, working towards favorable resolutions for our clients.
Protect Law Group's team of experienced attorneys understands the complexities surrounding SBA loans and stands ready to guide clients through the process of exploring and leveraging these debt relief options. Our experts are dedicated to advocating for our clients' best interests and securing the most favorable outcomes possible.
Negotiating SBA Loan Forgiveness
Despite the complexities of defaulting on an SBA loan, pursuing SBA loan forgiveness remains a viable solution. Our team excels in negotiations with creditors and the SBA, striving to achieve settlements that alleviate the financial strain on your LLC. Our expertise in commercial and banking litigation further bolsters our ability to secure favorable terms for debt restructuring.
Defaulting on an SBA loan within an LLC can pose significant challenges, but with the right legal guidance and strategic approach, navigating through this turmoil is possible. Protect Law Group's comprehensive services, spanning from financial analysis to negotiations and asset protection, are tailored to assist businesses in resolving SBA loan default issues effectively. Don't let the fear of default paralyze your business - explore the avenues of debt relief and settlement to secure a brighter financial future for your LLC.
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.
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.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.
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