Let’s chat about the chilly topic of an SBA loan default. You’re dreading it, aren’t you? Allow me, Lawscape of the Lawscape, to provide some perspective and possibly some light at the end of this tunnel. Put simply, we’re that lifeboat in case of a financial storm. We aim to untangle your SBA loan issues and proactively suggest options, such as an SBA offer in compromise.

Grasping Your SBA Loan Circumstances

Oh, I understand how daunting it is, feeling besieged by a potential SBA loan default. But trust me, you don’t have to face this predicament single-handed. In fact, it’s vital you don’t. Our savvy team’s role at Lawscape is to help our clients understand every aspect of their situation.

Offering advice on the probability of an SBA offer in compromise is our specialty. We’re here, ready to walk down this financial labyrinth with you, guiding you to the exit. You’re not alone in this. Come to us for a free initial consultation and let’s chat about your options.

Navigating the Fees

You’ve heard about SBA Standard Operating Procedures (SOPs), haven’t you? According to these, a moneylender is restricted on what fees they can legally impose on a borrower. Let’s talk about what kind of costs you might be in for.

Extraordinary Servicing Fees

Should a loan require exceptional service, with prior written SBA consent, the lender could charge a service fee. Limited to a maximum of 2 percent per annum, this is applicable to the outstanding balance of the part needing special service.

Consider the CAPLines program, where the lender needs to oversee accounts and inventory audits, manage cash collateral accounts, and gather receivables – this is dubbed as extraordinary servicing.

Fees for Out-of-Pocket Expenses

These may be collected by the lender for necessary expenses, for example, recording or filing fees. With SBA’s permission, the lender-incurred costs could be added to the loan balance, as long as SBA’s guarantee is outstanding. Let’s not forget though, for loans sold in the secondary marketplace, such fees cannot be added to the loan prior to the SBA purchasing the guarantee.

Late Payment Fee

Were you late on the loan payment? The lender could impose a penalty not surpassing 5 percent of the regular loan payment. However, this fee is optional, not obligatory, and the lender could charge less than the maximum 5 percent.

Now, when can the lender collect this fee? Should there be a delay of over 10 days past due on the payment, then the late fee can be imposed. Let’s say your payment is due on the 5th, and it’s received on or post the 16th – you’re looking at a late fee.

Bear in mind, the lender cannot add these late fees to the transcript of account lodged by them for the purchase of the guarantee. SBA will not be liable for paying any late fees – this is all on the borrower. If SBA buys a loan, only post the SBA being paid in full, can the lender collect any late fees due at time of purchase.

Forbidden Fees

Be aware that the lender is strictly prohibited from levying a fee for full or partial prepayment of a loan.

Give us a ring at 212-460-5004 today for a free evaluation if you’re grappling with an SBA loan problem.

Why Bank on Lawscape?

Don’t let SBA or Treasury debt problems darken your doorstep. Our firm, Lawscape, has efficiently steered clients clear of bankruptcy and home foreclosure, resolved millions in SBA debts through offer in compromise and negotiated repayment agreements.

Not just that, we’ve also defended millions in Treasury debts through AWG Hearings, Treasury Offset Program Resolution, cross-servicing disputes, representation with private collection agencies, compromise offers and negotiated repayment agreements.

We’re backed by the Agency Practice Act, authorized to represent Federal Debtors nationally before varied agencies such as the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. Trust us with your financial woes, with Lawscape, you’re in safe hands.