Facing a business failure is most definitely not a fun experience. However, the sooner you act and get your affairs and accounts settled, the sooner you'll be able to move on with your life. Protect Law Group is a California-based SBA attorney who helps business owners whose SBA loans are in default. Below, learn what not to do if you are facing an SBA loan default. Call for a free consultation today!
Avoiding your lender sends the signal that you have no intention of paying one single dime. This will either result in you being sued by your lender or having the SBA come after you, which could result in severe consequences for the rest of your life, including having your wages garnished, as well as your federal tax refund taken.
If your business is losing money every month and you are beginning to use credit cards to pay the bills and you are looking into taking out a home equity loan, then it's time to call it quits. Taking on more debt will only put you further into a hole.
If your SBA loan and other business loans are in default, do not sell your business assets. If you hope to settle with the SBA and your other lenders, you have to have something to offer, and if you sell your business assets to pay the bills, you have nothing at the end of the day.
Trying to get around the federal government is just not a good idea. They have seen every trick in the book, and, odds are, you will get caught. When that happens, you can expect the book to be thrown at you with a closed door to negotiations. Don't try to sell your business or otherwise mislead your lender in any way.
Protect Law Group is a group of SBA lawyers who help you when your business is in default on an SBA loan. It's always best to follow the laws, and with the help of a top-rated SBA debt resolution attorney, you can settle your loan and not walk away broke. Call for a free consultation 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.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
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