16 May 23

SBA Loan Default – Can I Modify My Note?

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Discover the Power of SBA Offer in Compromise and Other Loan Modification Solutions

Are you grappling with the terrifying reality of an SBA loan default? Fear not, for there are powerful and effective solutions designed to help you triumph over these seemingly insurmountable challenges. Our exceptional team of highly-skilled SBA attorneys specializes in equipping individuals with the knowledge, tools, and vital guidance required to successfully master the intricacies of the SBA loan system. Whether you seek to comprehend the enormously beneficial concept of an SBA offer in compromise or require expert assistance in modifying your note, we dedicate ourselves to supporting you throughout every stage of this daunting journey.

Confronting issues associated with an SBA loan may appear intimidating, but our unparalleled team is here to provide tailored advice and steadfast support that can bolster your chances of success during these trying times. Together, we will clarify every intricate aspect of your unique situation and offer actionable guidance that empowers you to regain control of your financial future.

The Remarkable Possibility of Note Modification

A burning question frequently asked by borrowers facing the prospect of an SBA loan default is whether modifying their note is within the realm of possibility. The astounding answer to this query is a resounding YES! Assuming particular conditions are met, it is possible to modify a note; however, procuring a lucid understanding of potential changes to your loan’s terms is a crucial first step.

For instance, when dealing with 7(a) loans that are sold on the secondary market, no modification can be made without securing written consent from the party purchasing guaranteed portions, be it the SBA or secondary market investors (SBA Form 1086). Nevertheless, there are exclusions under which a one-time deferment not surpassing three monthly installments or a continuous period may transpire without written consent.

Further modifications can encompass restructuring debt or adjusting payment schedules to ease the burden on borrowers who struggle with loan repayments. Examples of these modifications include transforming monthly payments into quarterly or annual increments based on revenue streams or converting revolving loans into non-revolving ones to facilitate an orderly liquidation process.

Unlocking the Potential of Loan Modifications

Numerous components of an SBA loan can be modified as part of a repayment facilitation or workout agreement, including:

Installment Amount Due

Modifying the installment amount due under a note can ensure that the loan balance is accurately amortized over the remaining life of the loan. This critical alteration assists viable borrowers in achieving their long or short-term objectives or supporting a workout.

Interest Rate

A reduction in the interest rate on a note may be incorporated into a workout agreement designed to attain the highest possible recovery in the shortest amount of time, propelling borrowers towards achieving their long or short-term aspirations.

Maturity Date

Crucially, the extension of a maturity date by up to 10 years beyond its original expiration can facilitate an orderly repayment, provided the extension is requested before the SBA loan guaranty lapses (less than 180 calendar days after the original maturity date).

Why Choose Us as Your SBA Debt Resolution Champions?

At our distinguished firm, we have triumphantly resolved millions of dollars in SBA debts through offer in compromise and negotiated repayment agreements – all without forcing our clients to endure the hardships of bankruptcy or the devastating prospect of home foreclosure. Additionally, we have provided invaluable assistance to countless borrowers with Treasury debt issues, including defending against debt through AWG hearings, Treasury Offset Program resolution, Cross-servicing disputes, private collection agency representation, compromise offers, and negotiated repayment agreements.

Collaborating with our esteemed team grants you access to experienced attorneys authorized by the Agency Practice Act to represent federal debtors nationwide before the SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of the Fiscal Service. Our expertise lies in devising creative strategies tailored to your specific SBA loan and Treasury debt circumstances, ensuring that the optimal outcome is achieved.

Confronting an SBA Loan Default? Reach Out to Us Today!

If you find yourself wrestling with the frightening reality of an SBA loan default, waste no time in contacting us for your complimentary, no-obligation case evaluation. Let our dedicated team guide you through the convoluted maze of this arduous process and craft bespoke solutions that cater to your individual needs and goals. Don’t delay – secure your financial future with our expert assistance today!

SBA Loan Default – Can I Modify My Note?

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