Local Relationships Result in Lower SBA Loan Default Rates
We will analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise for your SBA loan default.
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.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.
After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.
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.
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