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]

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]

What can the Treasury take to satisfy a defaulted SBA loan balance?

Question.What can the Treasury take to satisfy a defaulted SBA loan balance? Answer. The Treasury Offset Program is not subject to a statute of limitations and can collect on the defaulted SBA loan indefinitely. The Treasury can, among other things, garnish wages, even in states where wage garnishment by creditors is generally prohibited. The Treasury… [Read More]

How can I avoid my delinquent disaster loan being referred to the U.S. Treasury for enforced collection?

Question.How can I avoid my delinquent disaster loan being referred to the U.S. Treasury for enforced collection? Answer. You must contact an SBA Treasury Offset Representative prior to your loan being referred to the Department of the Treasury to set up acceptable payment arrangements. Once your loan has been referred to the U.S. Treasury, you… [Read More]

Why is the amount Treasury is collecting more than my SBA balance?

Question.Why is the amount Treasury is collecting more than my SBA balance? Answer. Once an SBA loan is referred to the U.S. Treasury for collection under the U.S. Treasury Offset Program, collection fees may add up to 30% more to your SBA deficiency balance. It is also more difficult to settle your SBA debt and… [Read More]