What Can Be Done after the Loan Goes into Default with SBA?
What Can Be Done after the Loan Goes into Default with SBA?
It is often recommended that you contact your lender if your payment has been missed. This might help get a temporary deferment of loan repayments, or even modifications to the loan. In case you miss the payment, it is harder to negotiate the concessions. The best thing to do is to contact the lender before the case is forwarded to the federal government. If you require any of the concessions, you would be asked to submit proper documentation to the lender and offer a legitimate explanation as to your need to modify the loan.
Financial documentation submitted could comprise of personal financial statements, accounts payable, receivable schedule, a current balance sheet, cash flow projections, tax returns, and income statements. In case you are in receipt of 60-day notice letter by the SBA regarding the missed SBA loan requirements, you need to act promptly to compile an offer in compromise. You have to avoid your debt from being sent to the treasury for the purpose of collections. Your offer in compromise should reflect the debt and offer a feasible plan. It is recommended that you approach an attorney specialized in debt settlement. They would be able to guide you with a good settlement offer which will stand a higher chance of approval from the SBA and the lender.
