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.