Protect Law Group shares the comprehensive guide to SBA offers in compromise. Become informed now.
Book a Consultation CallFrom Protect Law Group, an SBA Offer in Compromise is a settlement agreement between a borrower and the Small Business Administration (SBA) wherein the borrower agrees to pay a reduced amount to satisfy their outstanding debt. It offers small business owners a chance to resolve financial issues and potentially avoid bankruptcy or foreclosure.
Eligibility
To be eligible for an SBA Offer in Compromise, borrowers must demonstrate financial hardship and an inability to repay the debt in full. Factors like their financial situation, asset value, and future income potential are evaluated.
Process
The process involves assessing the borrower's financial standing, consulting with an experienced SBA loan attorney, preparing and submitting a comprehensive offer, and negotiating a settlement with the SBA. Once an agreement is reached, fulfilling the settlement terms within the designated timeframe is crucial.
Benefits
Benefits of an SBA Offer in Compromise include debt reduction, allowing borrowers to repay a more manageable amount. However, it's important to be aware of the potential temporary impact on credit scores. Recovering from financial hardship and avoiding bankruptcy can help rebuild credit in the long run. Compliance with the settlement terms is essential to prevent the revival of the original debt.
Helping You Succeed
Small business owners facing overwhelming financial burdens due to defaulting on SBA loans can benefit from considering an SBA Offer in Compromise, a type of SBA loan forgiveness. By understanding the process, eligibility criteria, and advantages, they can take the necessary steps to explore this debt relief option.
Consultation with legal professionals specializing in small business administration loans can increase the chances of a successful negotiation. Don't let the stress of debt hinder your entrepreneurial spirit—explore the possibilities of SBA debt relief 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.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) f borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.
Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.
This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.
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