SBA Loan Default: SBA to Increase Enforcement Efforts?
We help people who need to avoid SBA loan default by teaching them about SBA offer in compromise and about various SBA loan problems.
Are you a small business owner struggling with the weight of SBA loans? We understand the challenges you're facing and want you to know that there's a lifeline available: the SBA Debt Relief Program. At Protect Law Group, we're dedicated to being your best debt relief partner, providing small business debt relief and debt relief help that truly makes a difference. See what we can do for you by contacting us today!
The Small Business Administration's Debt Relief Program was designed to ease the financial burden on struggling entrepreneurs. If you're in a situation where bankruptcy seems inevitable, it's crucial to explore this option first. SBA Debt Relief works by covering a portion of your SBA loan payments, giving you room to breathe and regain financial stability.
Navigating the complexities of SBA loans and potential bankruptcy can be overwhelming. That's where Protect Law Group steps in. Our team of experienced professionals specializes in SBA Debt Relief, ensuring you get the best debt relief advice tailored to your unique situation. We're not just another firm; we're your advocates, your partners, and your path to a debt-free future.
Bankruptcy might feel like a dark lonely path, but with Protect Law Group by your side, you're never alone. Our commitment to providing the best debt relief solutions means we'll guide you through every step of the process. We've helped countless small business owners find their way back to financial stability through the SBA Debt Relief Program, and we're here to do the same for you.
The uncertainty that comes with SBA debt and the possibility of bankruptcy can be paralyzing. That's why we encourage you to take action today. Reach out to Protect Law Group, and let us be your beacon of hope. Our team's expertise in SBA Debt Relief ensures that the moment you call us, you're taking a step toward a brighter financial future.
The journey to small business debt relief and overcoming the challenges of SBA loans begins with understanding your options. The SBA Debt Relief Program is a powerful tool that can save your business from bankruptcy. Protect Law Group is your trusted partner, providing expert debt relief help and support to guide you through the process. Don't wait — call us today, and let's work together towards a debt-free tomorrow.
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 SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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.
Clients obtained an SBA 7(a) loan for their small business in the amount of $298,000. They pledged their primary residence and personal guarantees as direct collateral for the loan. The business failed, the lender was paid the 7(a) guaranty money and the debt was assigned to the SBA. Clients received the Official 60-Day Notice giving them a couple of options to resolve the debt balance directly with the SBA before referral to Treasury's Bureau of Fiscal Service. The risk of referral to Treasury would add nearly $95,000 to the SBA principal loan balance. With the default interest rate at 7.5%, the amount of money to pay toward interest was projected at $198,600. Clients hired the Firm with only 4 days left to respond to the 60-Day due process notice. Because the clients were not eligible for an Offer in Compromise (OIC) due to the significant equity in their home and the SBA lien encumbering it, the Firm Attorneys proposed a Structured Workout to resolve the SBA debt. After back and forth negotiations, the SBA Loan Specialist assigned to the case approved the Workout terms which prevented potential foreclosure of their home, but also saved the clients approximately $294,000 over the agreed-upon Workout term with a waiver of all contractual and statutory administrative fees, collection costs, penalties, and interest.
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