HomeWhat Happens When You Default On An SBA Loan

What Happens When You Default On An SBA Loan

We Reduce Business Debt

Lawscape is dedicated to helping business owners successfully resolve their business debt without headaches, or long term consequences.

We Provide Nationwide Business Debt Relief

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. 

Millions of Dollars in Debts

Our team has experience handling 10’s of millions in debt, ranging from SBA debt, to Merchant Cash Advance and more. 

All Types Of Debt

Regardless of the type of business debt you have, we can help. We have experience handling all types of secured and unsecured business debt. 


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. 

Let’s Talk SBA Loan Default and What It Might Mean for You

Look, I get it. Owning and managing a small business isn’t always smooth sailing, especially in the realm of finances. Sometimes, loan commitments can become overwhelming and defaulting on your SBA loan might seem imminent. At the Lawscape, we understand your worries and fears. You’re probably asking yourself, “So, what happens if I fail to meet my SBA loan installments?” or maybe, “What penalties will I be facing?”

You aren’t alone in this. And today, we’ll explore four important facts you need to know about defaulting on an SBA loan. I strongly recommend you stick around, and then consider reaching out to our seasoned SBA loan attorneys.

Defaulting Fast Tracks Loan Payment Demands

Imagine tripping over a tiny stone and suddenly finding a mountain to climb. Well, that’s basically what happens when you default on an SBA loan. Your creditor gets the legal clout to demand immediate payment of your entire loan balance. Yep, it’s as serious as it sounds, and it can deal a significant blow to your business’s financial standing.

You Will Be Responsible for Collection Costs

You know the fine print in your loan agreement that you glossed over? It stated that if you default on the loan, you’re on the hook for the costs related to the creditor collecting the loan. This might include the creditor’s attorney’s fees and other collection expenses.

Your Credit Score Might Take a Hit

Here’s a little trivia for you. Did you know that defaulting on an SBA loan can adversely affect your credit score? A defaulted loan is a red flag on your credit report and has the potential to degrade your credit score. This, in turn, can make it more challenging to secure loans or credit in the future.

Legal Action is Not Off the Table

Let’s nip this in the bud. Defaulting on a loan could significantly harm your credit, and also ignite legal action. If your creditor fails to collect the loan balance, they could turn to legal action against you. In more dire scenarios, your assets may be seized, or your wages garnished.

Defaulting on an SBA loan can carry serious consequences if not handled effectively. Luckily, we at Lawscape have the expertise and the knack for providing the SBA loan help you need to tackle the hurdle and find relief. Business debt relief is attainable, and our SBA loan attorneys are eager to assist you in navigating the complexities of this system in order to achieve the loan forgiveness you need.

Calming Your SBA Loan Worries With Expertise

Here at Lawscape, our dedicated SBA loan attorneys are well-equipped with the right knowledge and experience to navigate the complicated legal process and pinpoint the best solution for your financial conundrum. From initial SBA loan investigation and discovery, through to deferment and modification, we aim to offer you sophisticated advice that is tailored to your specific needs.

Still have burning questions regarding defaulting on an SBA loan or what you can do in your specific situation? You’re welcome to contact us! We’ve got your back!

Why Trust Lawscape With Your Treasury or SBA Debt Problems?

We’ve managed to help our clients resolve millions of dollars in SBA debts through Offer in Compromise and Negotiated Repayment Agreements without resorting to bankruptcy filings or facing the threat of home foreclosure.

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

Our attorneys are authorized by the Agency Practice Act to represent federal debtors nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

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


Unsecured Business Debt

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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