Alright, so let’s chat a bit about this potentially stressful topic of SBA loan defaults. Here at Lawscape, our main man Lawscape has bucketloads of know-how when it comes to halting that pesky SBA loan worry in its tracks. Our gumption is to conjure an SBA offer in compromise that could tidy up your SBA loan predicaments. Navigating an SBA loan ordeal solo? Not on our watch! We reckon that a little counsel from a chum in the law business (like Todd) could go a long way in getting you through these choppy financial waters.

Hopes for Economic Growth, courtesy of SBA

Talking about the people steering the SBA ship, the latest captain – Maria Contreras-Sweet – has some cool ideas for sprucing up the economic scene. She dreams about the dawn of a lending revolution directed towards the smallest businesses.

Miss Contreras-Sweet came up with this shiny new program for the SBA that she thinks will get more business owners a helping financial hand, specifically through the 7(a) program. Banks lend the dough, and a federal assurance protects them against default to the tune of $5 million.

SBA has gathered some flack, a few birdies have tweeted about their penchant for whopping large loans, and their perceived frosty response towards the little guys, not forgetting the minorities and immigrants.

Loan Stats and New Credit Scoring Model

Data talks. According to the most recent figures, 80% of loan requests from African and Hispanic Americans are asking for $150,000 or less. Armed with these stats, SBA has concocted a fresh credit scoring model that sets banks free to give a speedy thumbs up (or down) to smaller financing pitches, with less paperwork cluttering their desks. And get this, SBA is looking to entice more banks into its loan program.

Their new motto? “Open arms for all our lending pals and recruit some fresh faces to the SBA club,” as expressed by Contreras-Sweet herself.

Scoring Credit Worthiness

The incoming credit scoring gadget used by the SBA reveals creditworthiness through digging into personal and commercial credit histories. “The SBA’s total credit score will de-complicate and speed-up transactions between banks and the SBA,” chirped Contreras-Sweet. Describing the approach as cost-slashing and credit-based, she emphasized the importance of risk characteristics over socio-economic factors in ascertaining creditworthiness.

According to Contreras-Sweet, this methodology will usher in prompt, financially sensible and simpler procedures which can stimulate lenders to boost small-dollar transactions, set to be accessible this July, with SBA One kicking-off in early 2015.

Got an SBA loan giving you a headache?

Drop us a line right now for a consultation at 1-212-460-5004.

Lawscape: Your Ally in Treasury or SBA Debt Challenges?

Shocked to hear that we’ve helped clients sort out millions in SBA debts through offers in compromise and negotiated payment agreements, without sending them into the abyss of bankruptcy or tipping them into the perilous waters of home foreclosure? Well, believe it.

We’ve also defended millions in Treasury debts utilizing AWG Hearings, Treasury Offset Program Resolution, cross-servicing disputes, representation with private collection agencies, compromise offers, and negotiation of repayment agreements.

Authorized by the Agency Practice Act, our attorneys can step into the ring nationwide on behalf of federal debtors before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.