SBA Workouts: Option To SBA OIC To Settle SBA Debt
Dealing with an SBA OIC case can be hard. This is why you should allow our lawyers to settle SBA debt for you. Contact us about your SBA loan default.
As part of our continuing objective to try and even out the playing field – or, battleground for those with an SBA loan default and need some background information, we will be posting videos, articles and commentary on some of the tactics and strategic mental impressions that lenders (and their lawyers), the CDC, the SBA and the DOT consider when dealing with an SBA loan default so that you can “know your adversary.”
Hopefully, by “knowing your SBA adversary,” small business borrowers, obligors and SBA personal guarantors can gain some leverage when dealing with an SBA loan default.
In this video clip, the Coleman Report representative discusses with a lawyer who represents lenders and bankers with their SBA loan issues regarding lender liability during the SBA Offer in Compromise process.
Check it out here: SBA Lender Liability Claims During the SBA Offer in Compromise Process
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.
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.
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.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
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