What Can I Do If I Receive a Denial of a PPP Loan Application?
If your lender denied a PPP loan application you have rights to review and appeal. Our experienced SBA attorneys can guide you through the process.
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 executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
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.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
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