As a small business owner, facing a loan default can be a daunting prospect. The Small Business Administration (SBA) default process can lead to devastating consequences for your business and personal assets. However, by taking early action and seeking assistance from a debt management company like SolveDebt, you can avoid the potential hardships that could lead to financial ruin.
One option available to borrowers is a SBA Offer in Compromise. This program allows you to achieve closure for your loan by working with your lender to identify the most acceptable compromise. The offer includes a balance that is less than the total amount owed, allowing you to settle the debt quickly and avoid a total loss. By choosing a compromise instead of bankruptcy, you can prevent the bankruptcy case from remaining on your credit history for at least ten years and prevent disastrous effects on your business’s ability to rebuild after financial issues.
If you fail to manage your loan default, you could face foreclosure, and your lender could seize your business property and all assets. That’s why it’s crucial to seek help from a professional as soon as possible.
At SolveDebt, we understand the emotional toll that facing an SBA loan default can take on you as a business owner. That’s why we offer several options that can be of benefit, including SBA Loan Modification and SBA Lien Release. Our team of expert attorneys can help you negotiate a workout plan and loan modification with your lender or the SBA, review your original SBA loan documents, collect financial documentation, and prepare the necessary forms to settle your debt.
The SBA Offer in Compromise program is another solution that can help resolve your remaining loan deficiency for a fraction of the total amount due. Although the SBA is not required by law to accept an Offer in Compromise, if your offer provides them with a quick and cost-effective resolution, they will seriously consider it. Prompt action increases the likelihood of success, and waiting too long to initiate settlement discussions can lead to further collection efforts, such as wage garnishment and offset of your IRS tax refund and Social Security benefits.
Don’t let an SBA loan default lead to the shuttering of your business and the seizure and liquidation of its assets. Contact SolveDebt today to discuss your options and get the help you need to achieve financial stability.
SBA Loan Modification is another option that may be available to you if you’re struggling to make payments on your SBA loan. Our team of attorneys will work with your lender to modify the terms of your loan to make it more manageable for you. The available modifications include temporary or permanent reduction of interest, deferment of payments, extension of the maturity date to reduce payments, temporary reduction of payments, and re-amortization of loan payments.
At SolveDebt, we understand the importance of professionalism and a deep understanding of the law when dealing with SBA loan defaults. We use emotionally charged language and show-don’t-tell techniques to engage readers and convey the seriousness of the situation. Our articles use headings (h3 and h4) using HTML code to provide structure and make it easier for readers to navigate the content.
When facing an SBA loan default, it’s essential to take action early and seek the help of a professional debt management company like SolveDebt. Our team of attorneys has the experience and expertise needed to negotiate with your lender or the SBA, review your loan documents, and collect the necessary financial documentation to help you achieve financial stability. Contact us today to discuss your options and get the help you need to overcome your SBA loan default.
Solving Small-Business Loan Repayment with SolveDebt’s Offer in Compromise
Starting a small business can be thrilling, especially with the help of a 7(a) loan from the Small Business Administration (SBA). Unfortunately, not all businesses succeed, leaving many entrepreneurs drowning in debt and struggling to make their loan payments. If you find yourself in this position, it’s essential to seek the assistance of a professional bankruptcy attorney in Overland Park to explore your options.
One of the options available to you is an SBA Offer in Compromise. This process involves renegotiating the terms of your loan or settling your debt if your small business is in financial distress, and you cannot meet your obligations to the SBA. However, you need to consider several factors during the process, such as your ability to pay, economic or personal hardships, litigation costs, and applicable exemptions.
If you receive a 60-day notice from the SBA that your debt will be submitted to the Department of Treasury for collection, you must act quickly to avoid additional administrative fees and other difficulties. To improve your chances of success, here are some tips for submitting your offer in compromise package:
Reasonable Settlement Amount
The SBA will not accept nominal offers, so ensure that your settlement amount is reasonable and comparable to the amount you owe. Additionally, the SBA will assess whether the amount is realistic compared to what they could collect against you over time or in a bankruptcy scenario. Typically, the SBA will not consider offers for less than $5,000.
Lump-Sum Payment
Offering a lump-sum payment is more likely to be accepted than small monthly payments over an extended period. A lump sum that is reasonable and payable quickly is an attractive option for the SBA.
Submit All Required Documents
To submit an offer in compromise package with the SBA, you must complete a financial statement and other requirements, including a clear statement of the source of the settlement funds. The SBA typically requires two years of tax returns, recent bank statements, and paystubs. Ensure that all necessary documents are timely submitted to improve your chances of success.
Clear Financial Statement
Your financial statement must be transparent and easy to understand. If it is confusing, the SBA is unlikely to accept your offer. They need a clear understanding of your personal assets and liabilities to determine whether your offer is reasonable.
Explain Your Circumstances
When providing facts to support why your offer should be accepted, explain your circumstances with precision and clarity. This explanation is your opportunity to tell your story and convince the SBA that your offer is reasonable. The SBA is reviewing many offers and has limited time to review each file, so make sure to make your narrative compelling.
SolveDebt is a reputable and professional debt management company with a deep understanding of the law. We offer guidance and assistance to individuals struggling with small-business loan repayment. Contact us today to learn how we can help you navigate this challenging time.