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 over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
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.
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.
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