Got SBA Loan Worries? Let Lawscape Guide You.

Ah, SBA loan defaults – a terrifying concept indeed. This is the specter that’s entrapping many individuals, leaving them scratching their heads and in jitters. But hey, don’t beat yourself up. At Lawscape we’ve got your back. Our team of seasoned professionals will take a deep dive into your SBA loan conundrums, laying out possible solutions handy – an SBA offer in compromise may just be among them.

Navigating this minefield alone can be daunting, and that’s precisely why you need to rope in Lawscape’s expertise. Feel free to knock on our door for a free initial consultation. Just so you know, we’re here to make sure you’re not facing this on your lonesome.

SBA Default Rates: The Knotty Details

Certain franchise brands are grappling with a substantial number of SBA loan defaults unfortunately, according to the Wall Street Journal. Taking center stage are Quiznos, Cold Stone Creamery, Planet Beach Franchising, and Huntington Learning Centers Inc., which have culminated among the top 10 worst brands when it comes the volume of SBA loan defaults.

These unlucky 10 individually saw their SBA loans default at twice the rate of other franchises in the past ten years. To bring the gravity of this quagmire to light, these franchises alone contributed to a staggering 21% of all franchise-loan charge-offs made by the SBA.

The Predicaments of the 7(a) Loan-Guarantee Program

The SBA’s 7(a) loan-guarantee program holds the gold medal for popularity among the loan programs – no surprises there. Incepted over six decades ago, this program has been a beacon of hope for borrowers marooned by the traditional loan system – those looking to birth or expand their small businesses and franchises.

Data derived from the Wall Street Journal’s analysis paints an interesting picture: charge-offs on SBA 7(a) loans have been on the decline. Last year, for instance, a total of $705 million derived from roughly 8,100 such loans was charged off – that’s a sharp drop from the nearly $2 billion charge-offs we witnessed back in 2010.

A Closer Look into Defaulting Franchise Brands

Quiznos franchisees wore the crown of notoriety, with more charge-offs in the past decade than any other franchise. Defaults rates reaching a record-setting 30% saw these franchisees rack up unpaid loans worth $38 million from 2004 through 2013. This dire situation eventually pushed the franchisor file for bankruptcy in March of the following year.

Planet Beach Franchising Corp, on the other hand, was knee-deep in turbulent waters as their franchisees rocked a 41% default rate. Many credit their woes to the 10% tax levied on tanning services in 2010 that was part of the financing ObamaCare.

On a brighter note, the best performers in the default rates ranking stood out. Jimmy John’s, Little Caesar’s Pizza, and Days Inn ended up with pretty low default rates, marking 2% or less.

In case you’re staring at the possibility of an SBA loan default, don’t hesitate to touch base with our offices at 1-212-460-5004 for a FREE initial consultation.

Why Lawscape Should Be Your ‘Go-to’ for SBA Debt Issues

We’re not just ordinary attorneys. We’ve chalked up an impressive resume, including negotiating hefty amounts in SBA and Treasury debts, assisting clients steer clear of home foreclosure or bankruptcy, and resolving disputes. We’re also authorized to represent federal debtors on a national scale before relevant federal bodies such as the Treasury Department, the SBA, the Bureau of Fiscal Service, and The SBA Office of Hearings and Appeals.

So buckle up, let’s navigate this tumultuous journey together and find a way through the storm. After all, it’s always calmest after the storm.