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What You Should Know About The SBA Offer In Compromise Program

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What You Should Know About The SBA Offer In Compromise Program

Small business owners have access to financing that is guaranteed. This funding option helps them to acquire everything they need to start their business. This may include acquiring a property, inventory, or machinery for their business. However, businesses that are prospering may face financial issues due to delinquent loan payments. A SBA Offer in Compromise could provide them with an opportunity to reduce the repercussions for these failures.

What You Should Do When You Are Notified

The business owner receives a SBA demand letter when they are in default on their loan. The damage letter may require them to pay the entire balance of their account. To avoid immediate foreclosure of the property used as collateral for the loan, the business owner needs to contact an attorney. They should provide the attorney with the letter and any correspondences received from their lender. The business owner must take quick action when they have a SBA loan default. If they don't, the lender can foreclose on the property and destroy their credit.

Identifying the Right Percentage for the Offer

A SBA offer is a percentage of the total loan value. Since the loan is guaranteed by the Small Business Administration, the consumer may have some leverage. This guarantee ensures the lender that they will receive a portion of the loan. However, the consumer will be required to pay the remaining balance. By submitting a settlement offer, the business owner prevents the potential damage caused by foreclosure.

Avoiding a Foreclosure

A SBA loan foreclosure indicates that the lender has started the seizure process. They will place the property up for auction once they have possession. They sell it to the highest bidder. Any balance that is left over requires the borrower to pay off. If an attorney can acquire a settlement offer, the borrower avoids these consequences completely.

Small businesses need help when they are facing foreclosure. Once they are at least ninety-days delinquent, their lender can take legal action to take their property. The foreclosure process can have a lasting effect on the business owner and their ability to continue to operate their business. Company owners who need assistance with a settlement offer or Tax Offset Program should contact an attorney now.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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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

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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

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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.

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 504 loan balance of $375,000.  Debt had been cross-referred to Treasury at the time we got involved with the case.  We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.

$505,000 SBA 7(A) LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

$505,000 SBA 7(A) LOAN - FEDERAL DISTRICT COURT LITIGATION (CALIFORNIA)

Clients borrowed and personally guaranteed an SBA 7a loan.  Clients defaulted on the SBA loan and were sued in federal district court for breach of contract.  The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan.  We were subsequently hired to intervene and aggressively defend the lawsuit.  After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

$150,000 SBA 7A LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 7(a) loan balance of over $150,000.  Business failed and eventually shut down.  SBA then pursued client for the balance.  We intervened and was able to present an SBA OIC that was accepted for $30,000.

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