SBA loan default attorneys
SBA Loan Modification
Not all businesses run smoothly after start-up. In fact, at some point, many entrepreneurs run into trouble and cannot make the payments on their SBA loan. Lenders are not anxious to rewrite the terms of their loan, nor is the SBA. However, given the choice between a bad loan and a workout, lenders at larger institutions may find a workout plan and loan modification proposal preferable.
If you are facing an SBA loan default, the Perliski Law Group will use their best-efforts to negotiate a workout plan and loan modification with the SBA lender.
The process is not quick and requires a strong commitment from the borrower, but can be an effective solution if the lender is approached early enough.
- Temporary/permanent reduction of interest.
- Defer payments and/or principal only.
- Extend Maturity Date to reduce payments.
- Temporary Reduction of Payments.
- Re-amortize loan payments
Authorization and guidelines for an SBA loan modification may be found at: Standard Operation Procedure 50-50-4, Chapter 5, paragraphs 8(a), 15(a), 16(a), 17 as well as Chapter 7, Paragraphs 5(b) – 5(h). And, yes, SBA loan modifications are approved by Lender Banks and the SBA on a regular basis where the Borrower can present a viable turnaround plan and show that the business will be able to resume debt service in accordance with the change-in-terms.
Have a Question?
The Perliski Law Group is dedicated to helping small business owners survive the closure of their business and the resulting financial damage caused by an SBA loan default. During your free initial consultation, we will explain how the SBA collection process works and outline the SBA debt relief and SBA loan forgiveness options that may be available to you.
“We highly recommend the Perliski Law Group! They worked diligently with us to create an offer in compromise that was accepted by the SBA and the lender. Fair price and very responsive to all our questions and concerns. We couldn’t have asked for more.”