SBA Loan Default - What Fees Can A Bank Charge You
We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Understand Subchapter V and how it can provide effective debt management programs and business debt relief. Contact Protect Law Group today!
Book a Consultation CallIf your business is struggling with overwhelming debt, it's crucial to explore all available options for relief. One such option is Subchapter V. At Protect Law Group, our team of SBA loan attorneys specializes in helping businesses navigate the complexities of Subchapter V and find concrete solutions for their financial challenges. Contact us to learn more!
Subchapter V is a bankruptcy provision specifically designed for small businesses with debt under $7.5 million. It offers an expedited and streamlined process for debt adjustment and provides business owners with a more manageable path to financial recovery.
One significant advantage of Subchapter V is its focus on debt management programs. Under Subchapter V, businesses can propose a debt repayment plan based on their current income and projected future earnings.
Subchapter V benefits for small businesses include easier plan confirmation, debtor-only plan filing, no disclosure statement requirement, contested plan confirmation, relaxed absolute priority rule, no creditors committee, and no quarterly U.S. Trustee payments. These changes result in faster, less expensive reorganizations.
Navigating Subchapter V requires the expertise of SBA loan attorneys. From strategizing debt management programs to guiding negotiations, SBA loan attorneys play a crucial role in ensuring a favorable outcome for businesses seeking business debt relief.
Subchapter V provides small businesses with an opportunity to regain control of their financial situation through efficient debt management programs and business debt relief. By understanding the provisions and benefits of Subchapter V and partnering with experienced SBA loan attorneys like those at Protect Law Group, businesses can navigate this process with confidence and pave the way for a brighter financial future. Contact our team today to discuss how Subchapter V can work for your business!
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 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.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
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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