I defaulted on an SBA loan. What happens next?

Question. I defaulted on an SBA loan. What happens next? Answer: The SBA Collection process follows a more or less standard path as set forth in the SBA Standard Operating Procedures (SOPS). But, to think the SOP’s describe the reality of the SBA collection process would be factually incorrect. The collection process can vary in… [Read More]

Will the SBA Accept My Offer in Compromise?

Question. Will the SBA Accept My Offer in Compromise? Answer. There is no way to know. Period. There are so many variables: 1. Who handles your file; 2. What SBA office is handling your file; 3. Your level of cooperation with the lender, both real and perceived; 4. Whether you have liquid assets vulnerable to… [Read More]

If I want to make offer to settle, do I contact the lender or the SBA?

Question. If I want to make offer to settle, do I contact the lender or the SBA? Answer. In general, you will reach out to the lender first. Even in the event of an SBA loan default, your lender will generally continue to service the loan. If there is some unliquidated collateral remaining, your lender… [Read More]

Can the SBA Sue More than 6 Years Later?

Question. Can the SBA Bring a Contract Action More than 6 Years After the Default? Answer. 28 U.S.C.ยง 2415(a) establishes the federal statute of limitations applicable to SBA actions to recover under contract. Under this statue the SBA has 6-years to file suit to recover under the contract for non-payment under the Note. More specifically,… [Read More]

I have an SBA loan. Won’t the Government Guarantee Pay Off the Loan?

Question. I have an SBA loan. Won’t the Government Guarantee Pay Off the Loan? Answer.The Small Business Administration (SBA) helps small businesses and entrepreneurs obtain loans. One of the ways it does so is by guaranteeing the loan so that the lender is insulated from the risk of loss. For standard 7(a) loans, the guaranty… [Read More]