Honorable
Webster’s definition of the term ‘Honorable’ – “Having or showing a sense of right and wrong; characterized by honesty and integrity; upright. Bringing honor to the owner or doer.”
When speaking daily to business owners, ’honor’ is a term frequently used by distressed business owners. ” I took out this loan and no matter what, I will find a way to fulfill my obligation to the bank and SBA! It’s the honorable thing to do!”
The fact of the matter is that doing a workout and abiding by the leverages that both the bank and the SBA set forth is the honorable thing to do when all else fails. You had a dream! You had a business plan you presented to the lenders and they agreed to “PARTNER UP” with you! You worked hard to make that dream come true! You did all of the right things! Worked long hours! Invested time an energy to succeed! The plan was being implemented as proposed!
Then the economy “bellied up!”
Let’s be clear here. There are three partners in your business. The SBA, the Lending Bank, and of course the Business -represented by you. Technically, your BUSINESS did not fail! The BANK did not fail! The SBA did not fail! When the above three entities entered into a “Business Agreement” it was based on all things being equal. The bank would invest … the business would be managed properly … the SBA, being a government sponsored agency, would guarantee an atmosphere for success. All three would reap the benefits of a thriving business … as well as take partial responsibility for failure, their implicit obligation.
YOU are not in this alone! Your “Partners” must share the end results of what the current economy has dealt many small businesses. “Honor” must be shared equally by all!
Part of our work out strategy is “Offer In Compromise!” … The “Honorable Thing To Do!” Why?
1) It’s Transparent!
2) The criteria for such a workout is set forth by the Bank and SBA to guarantee a “Way Out” if all else fails!
3) In fact the end result of a successful work out rewards all “Partners” in some way. The bank gets its guarantee paid, the borrower ends up with affordable losses as his debt to the SBA on his personal guarantee is reduced to what the borrower can afford, and the SBA succeeded in its social mission to support small business and its job creation potential by giving entrepreneurs a way to exit without total disaster so they can do it again. WIN! WIN! WIN!
I have never spoken to a business owner who was not honorable. Honor I believe is a pre-requisit for the ability to lead people and run companies. A business work out is an honorable option for honorable individuals!
It has been quoted … “There are companies to large to allow them to fail.” We believe the small business sector, which is the backbone of our nation, should also have a safety net, and this is it, an honorable workout.
‘Honorable’; TAKING STEPS TO ALLOW YOUR COMPANY TO THRIVE AND GROW!
