SBA Loan Default: Is Your Loan Substandard?
We provide borrowers facing an SBA loan default with solutions. We identify your SBA loan problems and provide solutions, like an SBA offer in compromise.
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.
The client personally guaranteed an SBA 7(a) loan for $150,000. His business revenue decreased significantly causing default and an accelerated balance of $143,000. The client received the SBA's Official 60-day notice with the debt scheduled for referral to the Treasury’s Bureau of Fiscal Service for aggressive collection in less than 26 days. We were hired to represent him, respond to the SBA's Official 60-day notice, and prevent enforced collection by the Treasury and the Department of Justice. We successfully negotiated a structured workout with an extended maturity date that included a reduction of the 14% interest rate and removal of substantial collection fees (30% of the loan balance), effectively saving the client over $242,000.
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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.