We help people who need to avoid SBA loan default by educating them on SBA OIG investigations, teaching about SBA offer in compromise and about various SBA loan problems.
Book a Consultation CallDealing with the idea that you might be facing SBA loan default can be terrifying. The SBA attorneys in our office are skilled at helping clients understand all of the facets of their situations. If, for instance, you need to know what an SBA offer in compromise is, you can simply ask your lawyer. You should never face SBA loan problems alone. It is important to retain the services of an attorney who can help you through this difficult time in your life. We urge you to read about the services that we have available and to contact us if you believe that we can be of assistance to you right now.
On May 26, 2015, the SBA's Office of Inspector General (hereafter "SBA OIG") issued Evaluation Report 15-12, Improvement is Needed in SBA’s Separation Controls and Procedures. Their objective was to determine the effectiveness of the Small Business Administration’s (SBA) controls over separated personnel.
The SBA OIG found that existing separation controls were not effectively followed. These controls include deactivating network accounts within 24 hours of separation and collecting Federal property from separated personnel. Specifically, the SBA OIG's analysis of network accounts identified 73 active accounts which should have been deactivated when the personnel separated from SBA. A large number of these 73 accounts were not automatically deleted as those accounts had never been accessed. Additionally, two active network accounts were accessed after the personnel had separated from the Agency—which was identified as security incidents.
The SBA OIG also reviewed 57 employee separation checklists, which are used to document the termination of network access and collect Federal property from separated employees. However, the SBA OIG found that less than half of the forms—46 percent—were correctly completed, and 19 percent could not be found.
The SBA OIG also found multiple errors in the manner that contracting officer’s representatives (CORs) carried out contractor separations, and also noted that SBA did not have formal procedures on how to deactivate and terminate intern and volunteer accounts.
The SBA OIG made six recommendations to SBA. SBA fully agreed with five of the six recommendations, and partially agreed with the sixth recommendation. SBA agreed to reinforce the importance of completing the separation checklist. Additionally, SBA identified that it would start holding line-management responsible if the forms were not fully completed. SBA agreed to investigate the two security incidents and report these incidents to the US Computer Emergency Readiness Team. SBA agreed to a new recertification policy in which every account is reviewed and any account not accessed within the previous 60 days is disabled. SBA agreed to revise contracting guidance so that CORs follow the same separation guidance as other SBA personnel with separations documented in a separation checklist. Finally, SBA agreed to have interns and volunteer separation procedures documented in revised Personnel ID Verification card procedures.
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 personally guaranteed an SBA 504 loan balance of $337,000. The Third Party Lender had obtained a Judgment against the clients. We represented clients before the SBA and negotiated 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.
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.
.jpg)
