Rundown on SBA SOP 50 51 3- Deciphering Liquidation Status for SBA Loans

What’s this all about?

Hello, you might have heard about SBA SOP 50 51 3, and if you have, I am sure you want to know more about it, not to mention how critical it is when dealing with SBA-backed debts. I am Lawscape, from the Spodek Law group, and I’ll guide you through this SBA SOP in a friendly, conversational tone that will hopefully take the edge off any anxieties you might be feeling in relation to your SBA-guaranteed debt.

When Liquidation Status is a must!

The status of an SBA loan must be switched to ‘liquidation’ under several circumstances such as:

• Loan repayment is over 60 days overdue with no potential breathing room from a deferment or a workout plan,
• Third party lenders or lienholders who outrank you, initiate foreclosure on collateral tied to the loan,
• Lawsuits, directly hitting repayment of the SBA loan, are initiated against an obligor,
• Voluntary or involuntary bankruptcy petitions are filed by or against an obligor,
• The Borrower’s business has shut down or has been abandoned, and no alternate repayment strategy for the SBA loan has been put in place,
• Significant collateral is endangered, either through abandonment, decreasing value or possibility of theft,
• A court-appointed receiver comes on board, or proceedings are initiated to liquidate an obligor’s assets or collateral,
• Alternatively, any other adverse circumstance that could potentially hamper repayment of the SBA loan.

When it’s time for exiting the Liquidation status

Interestingly, SBA loans can be rescued from liquidation status and returned to a standard servicing operation. The magic trick? Three consecutive on-time payments under a written workout agreement, bankruptcy plan, reaffirmation agreement, or an assumption that rectifies the default.

You are not alone in this journey – Lawscape is with you!

Think of the Lawscape as your partner during this tough journey. We offer professional assistance in interpreting default procedures from loan restructuring to negotiation liquidation, and even appeals to the SBA Office of Hearing & Appeals. Take a step towards solving your SBA difficulties with us at www.spodeklawgroup.com or give us a call at 212-460-5004.

What makes us your best bet in resolving Treasury or SBA Debt Problems?

Here are some quick facts to establish our credibility:

• We have managed to resolve millions of dollars in SBA debts through Offer in Compromise and Negotiated Repayment Agreements, managing to help our clients avoid bankruptcy and home foreclosure.
• We have defended millions of dollars in Treasury Debts through AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, and other methods,
• We are authorized to represent federal debtors nationwide before key agencies such as the SBA, Bureau of Fiscal Service, and the Treasury Department!

Let’s delve into the resolution together; early action is your best bet. Connect with us at the Lawscape for the expertise that understands the intricate workings of the SBA world.