The SBA's new Standard Operating Procedure (SOP) regarding SBA Personal Guarantees
We help people who need to avoid SBA loan default by teaching them about SBA offer in compromise and about various SBA loan problems such SBA Personal Guarantees
Small businesses facing a loan default must take immediate action. A default could provide their lender with the legal right to seize all collateral used to secure the loan. This could include the building from which their company operates. Since these loans are backed by a personal guarantee and government funding, they require specific actions through an attorney. Local attorneys could help business owners acquire a SBA Offer in Compromise to settle their debt.
The first step when the owner receives a SBA demand letter is to seek legal counsel. An attorney could provide clarity about effective strategies to prevent a complete foreclosure of their property. A foreclosure could generate a higher loss for the business owner. This could also destroy their credit and make it impossible to acquire a different property later.
The next step is to complete the paperwork for the SBA offer in compromise. These documents provide a legal request for the offer in compromise. The attorney calculates the total value in which the borrower could pay to settle the SBA loan default. These documents are filed through the court once the compromise is accepted.
The attorney could also provide assistance through a Tax Offset Program. This helps the business owner acquire a settlement offer for any overdue tax payments associated with their company. They can submit these requests at the same time as the offer in compromise request.
The borrower should work with the attorney to acquire the most effective settlement. This could include closing the doors of their business and arranging the sale of the property. This could increase their odds of acquiring acceptance. It could also improve their ability to pay.
Lenders often accept these offers when the borrower can prove that they have the ability to pay the agreed upon value. This could prevent the likelihood of a SBA loan foreclosure and secure the borrower's credit.
Small businesses acquire government-backed loans to start new ventures. Unfortunately, select ventures may become unsuccessful. This could lead to a loan default and possible foreclosure. Business owners who need help should contact an attorney who could manage an offer of compromise for them 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 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 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.
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.
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