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.§ 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]

What if my Note is purchased by a third-party. How long do they have to sue me?

Question.What if my Note is purchased by a third-party. How long do they have to sue me? Answer: In Texas, the answer is settled, but in other states this answer may vary. In FDIC v. Bledsoe, 989 F.2d 805 (5th Cir.1993),the Fifth Circuit held that assignees of the federal government are entitled to the six-year… [Read More]

My state has a four-year statue of limitations on contract actions. How can the SBA sue after it has expired?

Question.My state has a four-years statue of limitations on contract actions. How can the SBA sue after it has expired? Answer. It is settled law that state limitations statutes are relevant in determining a claim’s viability at the time the federal agency acquires the claim.  If the state statute of limitations has expired before the… [Read More]

What is the U.S. Treasury Offset Program?

Question. What is the Treasury Offset Program Answer.The Treasury Offset Program (TOP) is a centralized offset program, administered by the Bureau of the Fiscal Service’s Debt Management Services (DMS), to collect delinquent debts owed to federal agencies and states, including defaulted SBA loans that the agency has transferred to Treasury. It is not subject to… [Read More]