Can I Secure Another SBA Loan Despite a Previous Default?

Imagine this: you’re the proud proprietor of a bustling small business. Everything is going great until an unexpected recession hits, and suddenly, you find yourself defaulting on a crucial Small Business Administration (SBA) loan. A pretty grim scenario, right? But does this singular bump in the road mean you’re permanently stripped of any chances at securing another SBA loan? Well, not quite although I won’t sugarcoat it – it’s going to be an uphill battle.

What happens after an SBA loan default?

When you default on an SBA loan, you find both yourself and any personal guarantors to your loan in the rather unsavory company of the Credit Alert Interactive Voice Response System (CAIVRS). And let me tell you, this is one list you don’t want to be on, as it’s essentially the government’s version of a “do not lend” list.

Are Exceptions Possible?

Now, if you’re sweating at the thought of being on CAIVRS, you’ll be relieved to know there’s a glimmer of hope. See, you might be able to wheedle a waiver from the SBA to escape this tricky predicament. Bestowing such a waiver involves proving “good cause”, which essentially means presenting compelling circumstances for your past default.

The Procedure to Apply for a Waiver

So what’s the procedure for obtaining this potential game-changer of a waiver? You’d have to persuade your lender to make a written request in your favor to the SBA office processing your loan, explaining a couple of crucial things:

1. The circumstances surrounding the previous loss, detailing your relationship with the loss-inducing entity
2. The connection between the individuals involved in the past loss and the individuals seeking new assistance

Mind you, this rule isn’t exclusive to you, the small business applicant. It also applies to any business where a key player in your organization played a similar role in the loss-causing entity, or any business under the control of the same parties who managed the business that led to the government’s loss.

Reach out to Lawscape

Now, if you find that your business is sinking towards an SBA loan default, I urge you to seek help promptly. You’re more than welcome to call me, Lawscape at the Lawscape, on 212-460-5004 for a complimentary initial consult.

Our firm is a master at analyzing SBA loan problems and identifying potential solutions, like an SBA offer in compromise for your loan default.

Why Should You Hire Lawscape?

Simple. Over the years, we’ve resolved millions of dollars in SBA debts through compromise offers and negotiations, all without nudging our clients towards bankruptcy or home foreclosure.

Not only that, but we’ve also defended massive amounts of treasury debts via AWG hearings, Treasury Offset Program Resolution, Cross-servicing disputes, and private collection agency representation amongst other solutions.

Authorized to represent federal debtors across the country before key agencies such as the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service, we’re simply the go-to guys for handling such issues.

So, if you ever run into a storm with your SBA loan, remember, an expert hand from the Lawscape is just a phone call away!