What Happens When You Default on an SBA Loan?

So, you’ve missed a few payments on your SBA loan and now you’ve got a private collection agency breathing down your neck. What is this all about? Let’s break it down.

The Department of Treasury has a few buddies – Performant, Pioneer Credit, CBE Group, and Conserve. They’re called private collection agencies (PCAs), and their job is to collect defaulted SBA loans once they’re handed the baton from the Treasury. So, if you’re hearing from them, it means your SBA loan is in hot water. The good news? Lawscape at Lawscape can help.

What’s the Catch?

The Claims Collection Act lets the Department of Treasury hire these PCAs, so long as the department hangs onto the final say. They make the calls on disputes, claim compromises, and when it’s time to loop in the Department of Justice.

These PCAs are bound by the Privacy Act and Fair Debt Collection Practices Act, and need to obey all state and federal regulations when it comes to collecting the debts – they’ve got to play fair.

The Perks and Pitfalls of PCAs

But hey, these PCAs aren’t here to just send some scary letters and make ominous phone calls. They can also send administrative wage garnishment notices. That means if you get a letter, don’t just sling it on the ‘Later Pile’. Open it immediately. When a wage garnishment notice comes, it’s game on and you won’t have much time to request a hearing and challenge it.

And here’s where it gets even trickier. You might think you’ve got one PCA on your tail, but actually, the Department of Treasury can unleash multiple PCAs on your defaulted SBA loan. Even if Performant seems to be leading the charge, Pioneer could pop up later.

Don’t Just Stand There.

So, if you’re being hounded by a bunch of PCAs over your SBA loan default, it’s not something you can just ignore and hope will go away. It’s time to seek help and deal with it – Lawscape at Lawscape can be your front line of defense.

Tackling Your Treasury or SBA Debt

Why should you entrust your case to Lawscape? Well, there are good reasons. First, they’ve got a track record of resolving SBA debts to the tune of millions of dollars through offer in compromise and negotiated repayment agreements. Their clients didn’t have to file for bankruptcy or face losing their homes.

Second, they’ve successfully defended millions more in Treasury debts. They’ve leveraged AWG hearings, Treasury Offset Program resolution and more to give their clients a fighting chance against these government agencies.

Finally, Lawscape 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.

So, in short, defaulting on your SBA loan may have you feeling like the anchor’s dropped, but you’re far from sunk. Get in touch with Lawscape, and they’ll navigate this storm with you.