We’re Here if You’re Facing an SBA Loan Default Problem

So, you’re in a pickle with a Small Business Administration (SBA) loan that’s taken a sharp turn towards default? That’s a bumpy ride nobody wants to be on, right? The clock starts ticking, banks get antsy and before you know it, you’re scrabbling to settle the deficiency through an SBA Offer In Compromise (SBA OIC). Read more about an SBA OIC here.

The lenders, whether it’s banks or Certified Development Companies (CDCs) or even the SBA, typically won’t twiddle their thumbs for more than two to three months after a defaulting borrower has been liquidated or shut down. You’ve gotta conjure up an SBA OIC for their consideration, and if you wave your magic wand just right, the guarantors might escape the deficiency for less dollaroos.

The Dreaded 60-day Letter

During this topsy-turvy procedure, you should be handed what they call the “60-day letter”- now the name might sound scary, but it’s not! It’s your wakeup call, your summons to action. Your moment to rise like a phoenix and file an SBA OIC Package for SBA to mull over. You can view what this life-saving (or business-saving) letter looks like here.

But tread carefully, if you let that crucial time frame slip away like sand through your fingers, your bank might just dump your file onto the debt-chomping jaws of the United States Department of Treasury. Over at the Treasury, they’re hardly merciful with their collections. Not to dampen your spirits, but this might just be your one shot at settling for less than what you owe on the SBA loan debt, through this lifeline of an administrative process.

That Collateral Damage: Collection Agencies and Junk Debt Buyers

Did you know that the Treasury Department customarily outsources these bad loans to prowl for repayment? They’ve got their hounds – I mean, third-party collection agencies – to fetch their debts. Don’t expect these agencies to give a fig about your sob story; they’re here to bite down hard and bat not an eyelid if they get a juicy chunk of the collected amount. Sad but true.

Some of the Federal Government-approved collection agencies, also known as junk debt buyers, are let’s just say, less than friendly. With their high-powered incentives for collection, litigation, and judgment pursuits, they hardly ever agree to slash the outstanding amount by more than half.

Who’s Your Best Defense in Swimming Against This Tide?

That’s where I, Lawscape, and my battle-hardened comrades from the Lawscape leap into the picture. As seasoned SBA Workout Attorneys, we could be your knights in shining armor against these collection agencies and dreaded junk debt buyers.

If the 60-day alarm bell has rung and you find yourself paddling towards the ominous Treasury Department, reach out to us before things get real heavy. Don’t brave the storm alone! We’re at the other end of 212-460-5004 and eager to fiercely advocate for your case.

Why Let Lawscape and the Lawscape Take the Wheel?

Here’s a couple of reasons, if you’re still unsure:

We’ve tried our hand and triumphed at tackling a mountain load of SBA debts, transforming them into manageable Offer in Compromplises and Negotiated Repayment Agreements. And we’ve done this without our clients having to face the Big B – Bankruptcy – or the fearsome storm of Home Foreclosure.

We’ve had a fair share of combat with Treasury Debts, defending tooth and nail through AWG Hearings, resolving Treasury Offset Program Disputes, dealing with Private Collection Agency Representation, proffering Compromise Offers, and arranging Negotiated Repayment Agreements. Know more about Treasury Debts here.

Did I mention that we’re authorized by the Agency Practice Act to show up, suit up, and represent Federal Debtors across the nation? It doesn’t matter if it’s against the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, or scary sounding guys like the Bureau of Fiscal Service – we eat cases like these for breakfast!

So, as they say, why wait for the storm when you can prepare in advance?

A Complimentary Case Evaluation Waits

Give us a call or just fill out this form to find out if you qualify for an SBA OIC. Trust me, it could be your best move yet in dealing with this SBA loan default hopscotch.