SBA LOAN PROBLEMS: DO SMALL BUSINESS LOANS HELP?
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
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.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’s ureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $212,000 on behalf of an individual guarantor. The borrower’s business experienced a significant downturn in revenue and was unable to sustain operations, ultimately leading to closure and a remaining personal guaranty obligation.
After conducting a thorough financial review and preparing a comprehensive SBA Offer in Compromise (SBA OIC) submission, we negotiated directly with the SBA and lender to achieve a settlement of $50,000—approximately 24% of the outstanding balance. This favorable resolution released the guarantor from further personal liability and provided the opportunity to move forward free from the burden of enforced collection.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
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