SBA have you forgotten your mission…again?

I am losing faith.

I thought the SBA mission was all about supporting the small business owner. I am beginning to think other wise, as recent experience has indicated that they are on their own  alternative mission and have forgotten their purpose, and have lost their way. How unfortunate, it is a huge change in policy if this is what I am seeing, or perhaps its a few runaway renegade SBA decision makers. I am worried as decisions are made by committees to prevent such abnormal variances, but it seems I am seeing this alternative mission too often to ignore.

The current issue is the “…we will wait a few years and see how you fare then and will make demands down the line. If you have somehow recovered,  you may be worth more then. We will reject your Offer to Compromise now and wait….let’s see what happens in a few years.”

This is not the mission of the SBA. There own program, the Offer in Compromise program is intended to determine the “present net liquidated worth of the borrower and that is the determining factor of what is an acceptable Offer in Compromise.”

How does “net present liquidated worth compute to “…we will wait a few years and see what happens. We think you may be worth more down the line so we will leave the liens on and get back to you in the future, we can wait you out.’So in the end, the SBA is more aggressive and more willing to see the destruction of the borrower then the worst bank. In fact the banks would not be allowed to do this by the FDIC, upon review the bank would be required to liquidate the assets or workout the debt directly, they simply would not be allowed to simply wait and see what will happen a few years down the road. ..indefinitely if they get their way.

So the small business owner cannot refinance his home or even sell it, cannot borrow again, cannot do anything because the liens remain on himself and his home. This is an Offer in Compromise program” No its a retribution and punishment  program.

So lets see the score card. Recently a retired school teacher wiped out by Katrina was totally refused an Offer in Compromise with a full demand for repayment despite the impossibility of such. The latest response including the ‘we will wai for a few years and see what happens’, and then the new programs which include the Cobra support program, a great idea but not for small businesses with fewer then ten employees, and of course  the new emergency $35,000 program for borrowers in arrears on their debt service except not for SBA borrowers prior o he laws date…

What’s with the SBA? Are they now trying to eliminate the small business owner? Certainly sounds like it. Whats going on up there ? Is this the way we support small business owners? I don’t think so.

Fortunately for our client we fight this regressive attitude and with diligence, perseverance, tenacity and vision we overcome this bad behavior, but what about those we do not represent? What will happen to them? Apparently when you pay for the SBA guaranty, it is intended to help the banks, not you the small business owner.

Call if your stuck…413-584-2581 Norm will arrange for a no -obligation tele-conference to discuss your issues and provide strategies that will work.