Contact Our SBA Attorneys for Nationwide Representation of SBA and Treasury Debt Problems
Book a Consultation CallWe provide individuals with solutions whose SBA loan problems & other federal non-tax debts are referred to Treasury for aggressive collection. We employ practical strategies to resolve your Treasury collection problems and teach you about submitting a Compromise Offer.
On October 7, 2012, the Secretary of the Treasury, Timothy Geithner, issued Treasury Order 136-01 which consolidated and re-designated the bureaus formerly known as the Bureau of the Public Debt and the Financial Management Service as the Bureau of the Fiscal Service.
This Order delegated to the Commissioner, Bureau of the Fiscal Service, the authority that was previously delegated to the Commissioner of the Public Debt and the Commissioner, Financial Management Service.
As a result of this Treasury Order, all federal non-tax delinquent debts are now serviced and collected by this special Bureau of the Treasury Department.
If your federal non-tax delinquent debt (e.g. SBA loan, SEC debt, FCC debt, USDA loan etc.) has been transferred to the Department of the Treasury (DoT) from an existing federal creditor agency, it will be aggressively serviced and collected by the Bureau of the Fiscal Service (BFS).
BFS can use those aggressive collection tools available to all federal agencies pursuant to the Debt Collection Improvement Act of 1996.
Some of the aggressive collection tools available for Treasury debt defense are:
If your federal non-tax debt has been referred to the BFS for cross-servicing, is is critically important for you as a borrower, obligor or guarantor to hire qualified Federal Agency Practitioners who can help defend you against some of the Bureau’s most aggressive collection actions as noted above.
Because practice before the Department of the Treasury and the Bureau of Fiscal Service requires specific knowledge and understanding of several core areas of law and process, most notably (1) the federal agency maze, (2) federal administrative law and procedure, (3) constitutional law requirements, (4) federal administrative litigation, (5) federal administrative hearing representation and appeals, (6) federal agency rules and internal procedures of the referring federal creditor agency which originated the federal non-tax debt, (7) federal collection defense representation, (8) Department of Justice collateral liquidation and collection litigation defense, (9) bankruptcy law and asset exemptions and (10) DoT compromise and negotiation tactics, it is very important that you conduct your due diligence and choose your professional representatives wisely.
If your federal agency practitioners are not authorized to practice before the federal agencies pursuant to the Agency Practice Act and do not have experience with the core areas as identified above (and all non-attorney federal agency representatives do not have the necessary qualification as they neither have the education, training or, most importantly, the actual license to legally practice within the scope of these parameters), then “caveat emptor” or “buyer beware.”
As a result of this Treasury Order, all federal non-tax delinquent debts are now serviced and collected by this special Bureau of the Treasury Department.
If your federal non-tax delinquent debt (e.g. SBA loan, SEC debt, FCC debt, USDA loan etc.) has been transferred to the Department of the Treasury (DoT) from an existing federal creditor agency, it will be aggressively serviced and collected by the Bureau of the Fiscal Service (BFS).
BFS can use those aggressive collection tools available to all federal agencies pursuant to the Debt Collection Improvement Act of 1996.
Some of the aggressive collection tools available for Treasury debt defense are:
If your federal non-tax debt has been referred to the BFS for cross-servicing, is is critically important for you as a borrower, obligor or guarantor to hire qualified Federal Agency Practitioners who can help defend you against some of the Bureau’s most aggressive collection actions as noted above.
Because practice before the Department of the Treasury and the Bureau of Fiscal Service requires specific knowledge and understanding of several core areas of law and process, most notably (1) the federal agency maze, (2) federal administrative law and procedure, (3) constitutional law requirements, (4) federal administrative litigation, (5) federal administrative hearing representation and appeals, (6) federal agency rules and internal procedures of the referring federal creditor agency which originated the federal non-tax debt, (7) federal collection defense representation, (8) Department of Justice collateral liquidation and collection litigation defense, (9) bankruptcy law and asset exemptions and (10) DoT compromise and negotiation tactics, it is very important that you conduct your due diligence and choose your professional representatives wisely.
If your federal agency practitioners are not authorized to practice before the federal agencies pursuant to the Agency Practice Act and do not have experience with the core areas as identified above (and all non-attorney federal agency representatives do not have the necessary qualification as they neither have the education, training or, most importantly, the actual license to legally practice within the scope of these parameters), then “caveat emptor” or “buyer beware.”
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’sBureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
Our firm successfully facilitated the SBA settlement of a COVID-19 Economic Injury Disaster Loan (EIDL) f borrower received an SBA disaster loan of $150,000, but due to the severe economic impact of the COVID-19 pandemic, the business was unable to recover.
Despite the borrower’s efforts to maintain operations, shutdowns and restrictions significantly reduced the customer base and revenue, making continued operations unsustainable. After a thorough business closure review, we negotiated with the SBA, securing a resolution where the borrower paid only $6,015 to release the collateral, with no further financial liability for the owner/officer.
This case demonstrates how businesses affected by the pandemic can navigate SBA loan settlements effectively. If your business is struggling with an SBA EIDL loan, we specialize in SBA Offer in Compromise (SBA OIC) solutions to help close outstanding debts while minimizing financial burden.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the 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.
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