The Small Business Administration (SBA) is an arm of the federal government best know for loan programs. Their loans are obtained more easily when you have less than perfect credit. They are also repayable over a longer period of time than most standard business loans from a bank or credit union. However, to counterbalance these advantages, the federal government can be very strict about repayment plans. As a result, SBA loan default and even SBA loan foreclosure can be commonplace. Studies have shown that, of all of the SBA franchise loans offered between 2003 and 2012 (representing over $1.5 billion), 28% defaulted.
When you receive a SBA demand letter, you may look for an attorney who represents business owners in SBA cases. The following is a list of benefits these attorneys can offer as you seek out appropriate representation.
- An attorney will first work to protect you and your personal assets. Then, they will focus on appealing the SBA's decision of default or foreclosure. That way, they will work to give you one of two outcomes: the time to start paying again or a way to close the business while remaining financially intact.
- Your lawyer will employ a series of tactics to stall foreclosure or allow you to start catching up on payments. These include requesting deferment, applying for administrative representation with the SBA, litigation, negotiation, a case brought before the SBA Office of Hearings and Appeals, and an SBA Offer in Compromise (SBA OIC).
- This last option involves coming to an agreement with the SBA in which partial or reduced payments are made in order to settle the debt. It involves a complicated application process that an SBA case attorney will understand. During the process, your attorney may be able to forestall a SBA loan foreclosure on your business property or home.
- The goal is to enable you to pay off part or all of your loan. An attorney may encourage you to apply for the SBA's Tax Offset Program, in which your yearly tax refunds are used as repayment. This eliminates the hassle and stress of making monthly payments.
- If you are not having SBA problems, many attorneys can help you get your affairs in order so you can apply for an SBA loan.
Many firms that are employed for SBA cases are willing to work anywhere in the country. Keep this in mind when selecting the appropriate legal counsel.