Pros and Cons of SBA Loan Modification
Discover the pros & cons of SBA loan modification with Protect Law Group. Expert SBA debt relief help for small businesses. Take control today!
If you are facing an SBA default, you don't necessarily need a SBA lawyer. However, with your financial future on the line, it's probably a good idea to retain one. Protect Law Group offers SBA debt resolution help for small business owners facing an SBA loan default in California. Below, we'll offer tips on how to choose the right SBA lawyer for you. Call for a free consultation today!
Experience is key when dealing with the SBA, SBA lenders, and the applicable laws. You'll also want one who is intimately familiar with the Offer in Compromise process in case you will go that route.
For small business owners facing an SBA default, money is an issue. The last thing you want is to spend every last spare dime defending all of your other dimes left. Typically, about 10% of the amount that your SBA lawyer saved you is a fair fee for their services.
While most SBA lawyers are looking to help small business owners, some will take advantage of your situation, especially if it's turned to desperation. Ensure your SBA attorney is offering you the best advice and following the law. They also should not be charging large upfront fees.
Are you comfortable with your SBA lawyer? At the end of the day, this person is potentially holding your financial future in their hands. Do you trust them? Most SBA lawyers offer free consultations. Call up a few and see what you think. Are they optimistic? Do they sound knowledgeable? Can you work with them throughout the duration of your case?
Protect Law Group offers experience and know-how when it comes to ensuring you have the most favorable outcome for your SBA case. 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.
Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
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.
Our firm successfully resolved an SBA COVID-19 Economic Injury Disaster Loan (EIDL) in the original amount of $150,000 for a Florida-based borrower. The loan, issued on June 4, 2020, was secured by business assets and potential personal liability through the SBA's Security Agreement.
Following the permanent closure of the business, we guided the client through the SBA’s Business Closure Review process and prepared a comprehensive collateral analysis. We negotiated directly with the SBA, obtaining a full release of the business collateral for $2,910 — satisfying the borrower’s obligations under the Security Agreement and eliminating any further enforcement risk against the pledged assets.
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