Can The SBA Garnish Social Security?
Yes, the SBA through the Department of Treasury can garnish your Social Security. But you do have options to stop the Social Security garnishment.
Protect Law Group can provide the path forward for recipients of the EIDL program seeking loan forgiveness. Book a consultation call with us today!
Book a Consultation CallProtect Law Group represents small business owners with more than $30,000 of debt before the Small Business Association (SBA) and the Treasury Department's Bureau of Fiscal Service. When talking about different types of small business loans, a key program to understand is the Economic Injury Disaster Loan (EIDL), which has been crucial for many businesses and entrepreneurs during challenging times.
The EIDL loan is for any businesses located in an official disaster area or experiencing substantial economic injury. The SBA has introduced the EIDL Hardship Accommodation Plan, which helps those facing continued financial difficulties. In this blog post, we will explore what the plan entails and how it can benefit loan recipients seeking EIDL loan forgiveness.
Many EIDL loan recipients are eager to achieve loan forgiveness to alleviate their financial burdens. If you fall on continued hard times after receiving the EIDL, there is a plan forward. The process of EIDL loan forgiveness involves meeting certain criteria set by the SBA.
The EIDL Hardship Accommodation Plan is designed to offer relief to borrowers who are struggling to repay their EIDL loans due to unforeseen, short-term financial hardships. This plan allows borrowers to request accommodations such as loan term extensions, payment deferrals, and other options to help them manage their loan obligations more effectively.
To qualify for the EIDL Hardship Accommodation Plan, borrowers must demonstrate that they are facing financial difficulty that impacts their ability to repay their EIDL loan, such as being default on payments. Borrowers can submit a request for accommodation to the SBA, outlining their specific circumstances and providing any supporting documentation as needed. At Protect Law Group, we are committed to helping borrowers through this process.
By participating in the EIDL Hardship Accommodation Plan, borrowers can potentially avoid defaulting on their EIDL loans and preserve their credit ratings. The accommodations provided under this plan can help borrowers navigate challenging financial situations and work towards achieving EIDL loan forgiveness in the long run.
The EIDL Hardship Accommodation Plan serves as a valuable resource for recipients who are facing financial difficulties after receiving and seeking forgiveness. Protect Law Group can assist you in navigating this process from start to finish by outlining steps, negotiating on your behalf, and offering small business law expertise. By understanding the purpose of this plan, how to qualify for it, and the benefits it offers, borrowers can take proactive steps to manage their EIDL loans effectively and secure their financial stability.
If you are experiencing financial hardships related to your EIDL loan, book a consultation call with us to explore the next steps. Protect Law Group can provide the support you need to overcome these challenges and move forward with confidence.
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' 7(a) loan was referred to Treasury's Bureau of Fiscal Service for enforced collection in 2015. They not only personally guaranteed the loan, but also pledged their primary residence as additional collateral. One of the clients filed for Chapter 7 bankruptcy thinking that it would discharge the SBA 7(a) lien encumbering their home. They later discovered that they were mistakenly advised. The Firm was subsequently hired to review their case and defend against a series of collection actions. Eventually, we were able to negotiate a structured workout for $180,000 directly with the SBA, saving them approximately $250,000 (by reducing the default interest rate and removing Treasury's substantial collection fees) and from possible foreclosure.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
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.
.jpg)
