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.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
Clients personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated an SBA OIC that was accepted for $30,000.
Clients executed personal and corporate guarantees for an SBA 7(a) loan from a Preferred Lender Provider (PLP). The borrower corporation defaulted on the loan exposing all collateral pledged by the Clients. The SBA subsequently acquired the loan balance from the PLP, including the right to collect against all guarantors. The SBA sent the Official Pre-Referral Notice to the guarantors giving them sixty (60) days to either pay the outstanding balance in full, negotiate a Repayment (Offer in Compromise (OIC) or Structured Workout (SW)), challenge their alleged guarantor liability or file a Request for Hearing (Appeals Petition) with the SBA Office of Hearings & Appeals.
Because the Clients were not financially eligible for an OIC, they opted for Structured Workout negotiations directly with the SBA before the debt was transferred to the Bureau of Fiscal Service, a division of the U.S. Department of Treasury for enforced collection.
The Firm was hired to negotiate a global Workout Agreement directly with the SBA to resolve the personal and corporate guarantees. After submitting the Structured Workout proposal, the assigned SBA Loan Specialist approved the requested terms in under ten (10) days without any lengthy back and forth negotiations.
The favorable terms of the Workout included an extended maturity at an affordable principal amount, along with a significantly reduced interest rate saving the Clients approximately $181,000 in administrative fees, penalties and interest (contract interest rate and Current Value of Funds Rate (CVFR)) as authorized by 31 U.S.C. § 3717(e) had the SBA loan been transferred to BFS.
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