SBA LOANS
SBA Loan Restructuring & Legal Representation
SBA-backed business loans can involve complex loan agreements, guarantees, servicing requirements, and potential collateral issues.
JP Law Firm assists eligible business borrowers in evaluating their SBA loan obligations and exploring available legal and negotiated resolution strategies, including potential restructuring and principal reduction where available.
When an SBA Loan Becomes Difficult to Manage
Business owners may encounter financial pressure because of:
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Reduced business revenue
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Cash-flow problems
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Missed payments
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Loan defaults
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Personal guarantees
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Maturity or repayment issues
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Collateral concerns
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Creditor or lender collection activity
The appropriate strategy depends on the specific loan documents, SBA program, servicing status, guarantees, collateral, and applicable requirements.
The SBA maintains specific servicing and liquidation procedures for SBA loans, including 7(a) loans, so the particular loan program and status matter.
Potential SBA Loan Resolution Options
Depending on circumstances, potential strategies may include:
Reviewing the loan documents
Evaluating guarantees
Reviewing payment and servicing history
Negotiating with the appropriate parties
Exploring restructuring options
Pursuing potential principal reduction where available
Addressing creditor disputes
Evaluating available legal remedies
OUR APPROACH
Review
Evaluate
Develop a Strategy
Work Toward Resolution
Work Toward Resolution
We begin by understanding the loan and the circumstances surrounding the financial difficulty before determining what legal or negotiated options may be appropriate.
Frequently Asked Questions
Can an SBA loan principal be reduced?
A principal reduction may be available in certain circumstances, but it is not automatic and depends on the loan, applicable SBA requirements, lender/servicer decisions, and the specific circumstances.
Do you handle SBA-backed business loans?
JP Law Firm can evaluate eligible SBA-related debt matters and determine whether the firm can assist with the specific situation.
Does an SBA loan always require collateral?
Collateral requirements can vary depending on the loan program and circumstances. The applicable loan documents and SBA requirements should be reviewed before making a determination.