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.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) default in the amount of $150,000 on behalf of Illinois-based client. After the business permanently closed due to the economic impacts of the pandemic, the owners faced potential personal liability if the business collateral was not liquidated properly under the SBA Security Agreement.
We guided the client through the SBA’s Business Closure Review process, prepared a comprehensive financial submission, and negotiated directly with the SBA to release the collateral securing the loan. The borrower satisfied their collateral obligations with a payment of $2,075, resolving the SBA’s security interest.
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