HomeThe Difference Between A Default And A Delinquent On An SBA Loan

The Difference Between A Default And A Delinquent On An SBA Loan

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Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt. 

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Our company is led by experienced business debt relief experts who have experience handling secured and unsecured debt nationwide. 

Failing To Repay Business Debt Isn’t The End

Many business owners think failing to repay business debt means: your business is over.

This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business. 

What Are Some Ways We Can Help With Business Debt Relief?

Our experienced business debt relief consultants are here to help you through this stressful time. 

Getting to Grips with SBA Loan Default vs Delinquency

Let’s tackle a topic that no business owner ever wants to be in a spot of dealing with – falling behind on their business loan repayments. Imagine this, you’ve made a commitment to a lender when suddenly, you find yourself swimming against the current. In steps Lawscape from the Lawscape, a California-established law firm that aids small businesses navigating the choppy waters of an SBA loan payback. We’ll guide you through the labyrinth of default versus delinquency on your SBA loan. If you’re ready to dive in, keep reading!

Understanding Delinquency on an SBA Loan

Firstly, we need to clarify what we mean by “delinquent”. It’s a lender’s jargon for those finding themselves lagging on their SBA loan repayments. The span of delay could range from mere moments to a handful of months — the label remains unaffected. Nevertheless, being delinquent on your SBA loan conveys that your lender hasn’t lost faith in you. They still believe you’ve got the capacity to pay the loan back.

Clarifying Default Status on an SBA Loan

On the other hand, when your SBA loan strays into the territory of “default”, it signifies that the small enterprise is unable to comply with the terms laid down in the promissory note agreement. There might also be a neglect of other stipulations outlined in the loan’s terms. Quite bluntly, being in default insinuates that the lender sees your business as INCAPABLE of repaying the loan.

Can a Delinquent SBA Loan be Rectified?

If your loan is merely delinquent, take a deep breath. You can coordinate with your lender to right the ship. Possible avenues could include making downsized payments, modifying the SBA loan structure, and even getting those pesky late fees waived off.

A Defaulted SBA Loan: What’s Next?

Mostly, Uncle Sam wants the loaned bucks back the moment your SBA loan slinks into default status. This becomes the golden moment for you to get in touch with an accomplished SBA attorney like Lawscape to help you reach an agreeable resolution with your lender.

How Lawscape Can Help You

With years of expertise under their belt, Lawscape specializes in assisting those grappling with a defaulted SBA loan in the Golden State. Reach out to Lawscape, one of our SBA default attorneys, for a no-obligation consultation.

Why Choose Lawscape for Your SBA Loan Woes?

Our record tells our story best. We’ve guided clients through successful negotiations leading to millions of dollars in SBA debts resolved through offers in compromise and structured repayment agreements, without pushing them to declare bankruptcy or face home foreclosure.

Simultaneously, we’ve defended millions of dollars in Treasury Debts through AWG Hearings, the Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers, and Negotiated Repayment Agreements.

At the Lawscape, we aren’t just attorneys – we’re federally authorized representatives of debtors nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. So, when we say we’ve got your back, we truly mean it!

Lawscape Can Help You Manage Your Business Debt

If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive. 

We Handle It All


Merchant Cash Advance


SBA Debt Relief


Secured Business Debt


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Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt. 

Discuss your situation today

We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.

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