The SBA Offer in Compromise is a program developed by the Small Business Administration to help business owners who have defaulted on their SBA loans. Whether or not this settlement process will be made available to business owners who are unable to pay their EIDL loans remains to be seen, and in those cases, it’s best to pursue the EIDL Hardship program.
Sometimes the SBA will release loan guarantors of their liability for less than what is owed if presented with a compelling reason why it is unlikely the SBA will ever be able to collect more than that. To be successful, you need to know both the written and unwritten SBA guidelines. We have represented hundreds of borrowers in settling their personal guarantees with the SBA and excel at reaching an affordable resolution without bankruptcy.
When the SBA writes a loan and hands it over to your business, you—as the guarantor of the loan—become liable for the remaining balance if your business closes. The bank and SBA can pursue your personal assets, meaning foreclosing on your home or other property, garnishing wages and levying your bank accounts or other assets. To navigate these tricky waters and avoid financial ruin, you need the help of an expert. There is too much at stake to take on the task alone—professional services are required to ensure your package will be reviewed and accepted and to prevent the lender from taking aggressive actions.
Second Wind Consultants has resolved hundreds of SBA Offer in Compromises and frequently arranges for settlements with a no-interest payment plan. With a successful negotiation of your guaranty, any liens against the real estate are removed, judgments are marked satisfied or withdrawn, and guarantors are forever released from their liability. In short, we can help you move on with your life.