Is There a Statute of Limitations on SBA Loans?
Yes, there is a statute of limitations that applies to defaulted SBA loans. But the government can still collect from you.
As a small business owner, you may wonder if taking out a small business loan impacts your credit score. The answer to this question depends on a few factors. In many cases, small business loan defaults do not impact your personal credit score. However, there are a few situations where a small business loan can have an impact on your personal credit score. Protect Law Group is here to talk about knowing the right time and situation to get and not get a business loan. Get your finances handled by a team that cares by contacting us today!
There are a few situations where it's not a good idea to take out a small business loan default, even if you're confident you'll be able to make the payments. First, if your business is in a very early stage of development, it may not be wise to take out a loan. Your business may not yet have the revenue necessary to make loan payments.
In addition, if you have bad personal credit, you may not want to take out a small business loan. This is because lenders will likely view you as a high-risk borrower. As a result, you may be offered less favorable terms, such as a higher interest rate. If your business doesn't need the money immediately, it may be better to wait until your credit improves.
If you default on a small business loan, your personal credit score may be impacted. Defaulting on a small business loan can damage your personal credit score in the same way that defaulting on any other type of loan would damage your credit score. If you're considering taking out a small business loan default, make sure that you will be able to make the payments on time.
There are a few situations where it's not a good idea to take out a small business loan, even if you're confident you'll be able to make the payments. First, if your business is in a very early stage of development, it may not be wise to take out a loan. This is because your business may not yet have the revenue necessary to make loan payments.
There are a few other situations where a small business loan default may impact your personal credit score. For example, if you use a personal guarantee to secure the loan, your personal credit score may be impacted if you default on the loan. Additionally, if you take out a small business loan and use your home as collateral, your personal credit score may be impacted if you default on the loan.
At Protect Law Firm, we specialize in helping small business owners get out of small business bankruptcy and SBA loan default. Whatever your credit situation might be with your small business, we can help! Ower more than $30,000? Contact us today to learn more about how we can help you get back on track financially.
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.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
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.
.jpg)
