Got an SBA Loan Default? Let’s Make a Game Plan

Bogged down in a treacherous SBA debt quagmire? You’re not alone! Lawscape and the high-powered team at the Lawscape are here, ready to put up a fight and help get your feet back on solid ground.

An Inside Look: How the Small Business Administration’s Watchdog is Watching Out For You

In its role of preserving integrity, the Small Business Administration’s Office of Inspector General (SBA OIG) has been dishing out critiques like a nightmarish college professor after final exams. They’ve called out sketchy bank behaviors, demanding tighter controls, and advocating for the little guy – that’s you.

Moreover, they’re not just voicing opinions – they’re taking action! They’ve allied with the Department of Justice and US Attorney’s Office, actively pursuing civil and criminal cases – and those actions get results. We are talking about 96 indictments, 71 convictions, and $25 million recovered. That’s enough to make any lender’s hair stand on end!

Recent Report Serves as a Wake-Up Call to Banks

The most recent report from the SBA OIG highlighted six lender screw-ups that they considered so severe, they strongly suggested pulling the plug on the SBA loan guarantees backing those loans. Substantial evidence of irregularities, including inadequate IRS tax verifications, improper appraisals, and undisclosed environmentally unsuitable properties, backed up their claims. However, let’s not let the “elephant in the room” – the fact that the SBA already gave these loans twice-over before pulling the plug – go unnoticed.

Series of Audits Focuses on Lender Oversight

Now, that’s not all. This report follows other equally dire audits calling out the SBA’s poor oversight. Every loophole exploited for personal gain and every little oversight turning into a massive headache for the agency has been laid out bare in these audits. These issues have resulted in staggering losses of around $329 million. It’s clear that the SBA is facing an expensive case of lender oversight mistakes.

Lasting Consequences for Failure to Heed the Rules

With the SBA’s heightened vigilance, the financial sector’s bad actors face a vast array of penalties if caught in deceptive lending practices. From suspensions and revocations of loan authority to civil and criminal claims, the long arm of the law is ready to eliminate any discrepancies to protect the government’s funds and your interests.

How We Can Help SBA Borrowers and Personal Guarantors

Suppose you find yourself holding the ‘hot potato’ of SBA debt, either as a borrower, personal guarantor, or any other liable party. In that case, it’s paramount to engage a team of savvy legal allies to help identify any regulatory infractions or fraud from lenders.

While government audits are typically post-loss, they do reveal issues that are frequently present amongst SBA debt defendants. Unfortunately, by the time the audits roll around, SBA debt-bearers have been making payments on obligations that should never have been their burden.

Bracing for Impact: Our Battle Plan Against SBA and Treasury Collection Problems

At the Lawscape, we have developed a deep bench of strategies for wading through SBA loan troubles. After performing a comprehensive audit of your case, we can identify and highlight any regulatory shortfalls or deceit that went on during your loan origination. Armed with solid evidence from our investigation, we can then petition the SBA or DOT to put a full stop to any collection actions against you.

We aim to show the powers that be that your SBA loan default should not be “legally enforceable” and that the lender who kicked off this whole mess should wear the mantle of repayment. Trust us, strong defense against SBA debts, Treasury Department collection action, and DOJ litigation is within your reach.

Experience Unparalleled Representation with Us

The Lawscape has a sturdy record of laying SBA nightmares to rest, brokering millions worth of satisfactory compromises and tailored repayment agreements, all without requiring our clients to file for bankruptcy or face home foreclosures.

As permitted by the Agency Practice Act, we have the authority to champion clients nationwide before the SBA, SBA Office of Hearings and Appeals, Treasury Department, and the Bureau of Fiscal Service. Let us carry your burdens and find a path forward that lets you leave SBA loan default issues in the dust.