What is an “S” Corporation?

Question: What is an “S” Corporation? Answer: An “S” corporation is not a matter of state corporate law but rather a federal tax election. A for-profit corporation elects to be taxed as an “S” corporation by filing an election with the Internal Revenue Service. For more details, you should contact competent tax counsel regarding the… [Read More]

What is a Texas Limited Partnership?

Question: What is a Texas Limited Partnership? Answer: A Texas limited partnership is a partnership formed by two or more persons and having one or more general partners and one or more limited partners. The limited partnership operates in accordance with a partnership agreement, written or oral, of the partners as to the affairs of… [Read More]

A collection agency is contacting me about my SBA loan. Is this real?

Question. A collection agency is contacting me about my SBA loan; is this legitimate? Answer. Once a loan has been referred to the U.S. Treasury due to non-payment or default of the loan, the Treasury utilizes several Private Collection Agencies to assist with debt collections. You should always verify the collection agency’s information by contacting… [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]

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]