Hello there, let’s talk about an issue that many people find quite nerve-racking – SBA loan defaults. Now, no one likes the notion of defaulting on a loan, let alone an SBA loan. But, don’t worry. Here at Lawscape, Lawscape and our team specialize in assisting individuals in similar predicaments. We excel at dissecting your SBA loan issues, guiding you through possible solutions, specifically the intriguing concept of an SBA Offer in Compromise ([a tool offered by the SBA for resolving defaulted loans](https://www.sba.gov/document/information-notice-5000-20003-offer-compromise-program-guide)).

Understanding SBA Loan Defaults

The meat and potatoes of this isn’t the most fun, but it’s crucial to comprehend. The thought of an SBA loan default looming over you can be nerve-wracking, to say the least. But, it’s important to bear in mind that even in such situations, you’re not alone. The veteran SBA attorneys here at Lawscape serve as your proverbial compass, helping you understand your circumstances from all angles. Together, we assess the feasibility of an SBA offer in compromise or other potentially pertinent solutions.

Why to Team Up with Lawscape?

There’s nothing quite as comforting as the hand of a skilled attorney guiding you through a tricky legal situation. It’s not just about advising you; it’s about being your ally, your dutiful navigator steering you through these tumultuous times. Reach out to us for a conversation – you don’t need to face your SBA loan hurdles alone; we’re here to circumnavigate this minefield with you.

The Case of Franchises and SBA Loans

Now, let’s discuss something interesting. [Patrick Clark](https://www.bloomberg.com/authors/APoZ3Xrlo0I/patrick-clark) from BloombergBusiness wrote a thought-provoking article, where he critiqued the SBA lending methodology to franchises. This was based on a labor group report from Service Employees International Union that has long championed for improved remuneration for fast-food employees. Clark’s assessment highlights a troubling statistic – the default rates for franchises are around the 20% mark.

The Plot Thickens

According to John Reynolds, president of the International Franchise Association Educational Foundation, the union had cherry-picked data and overshadowed the success stories. He emphasized that many franchisees utilized SBA loans to enhance their business operations and contribute to the economy. Though this argument may have merit, our research at Lawscape indicates that a 20% failure rate is indeed quite plausible.

Franchise Default Rates

Stacks of data indicate that specific franchises, like Quizno’s for example, experience considerably higher default rates. Discussions with assorted SBA lenders corroborate the notion that franchising can often be a thorn in one’s side. The freedom-less life, the constant 80-hour work weeks for a relatively modest income of around $50k per year is, unfortunately, a common experience for small franchises. The costs to simply exist – franchise fees, supply procurements from franchisors – can easily hamstring smaller players.

Larger versus Smaller Franchisees

However, larger franchisees who manage multiple outlets often fare better by leveraging economies of scale, which are beyond the reach of smaller operators. This information isn’t to demoralize you, but to give you an idea of the franchise scene. At Lawscape, we’ve been able to assist numerous failed franchisees in tackling their SBA-related debt. We take an extensive look into specific franchise default rates, the reasoning behind the statistics, and apply this valuable analysis to aid our clients in negotiating a satisfactory compromise with the SBA.

Comprehensive Solution for SBA and Treasury Debt

Here at Lawscape, we take pride in having successfully resolved SBA debts worth millions through the Offer in Compromise process and negotiated repayment agreements, helping clients avoid bankruptcy and potential foreclosure. We’ve defended clients against Treasury debts through AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, and more. Remember, Lawscape is authorized by the Agency Practice Act to represent federal debtors nationwide.

Get in Touch Now!

Facing an SBA loan default? Don’t hesitate and reach out to us now for an in-depth consultation with an experienced SBA workout attorney. Just dial 212-460-5004. Let Lawscape and his efficient team at the Lawscape guide you through these challenging times.