Small Business Loan Debt Solutions for Southern California Business Owners

Everyone who starts a new business thinks about how to get their hands on capital to fund their start-up expenses and operations until they get established. While some people can use accumulated savings or other means to self-finance a new venture, a large portion of Southern California new business owners turn to lenders for funding.

The Small Business Administration (SBA) is one important source of financing to either cover initial start-up expenses, to fund ongoing operations or to finance an expansion of business operations. Often, due to unforeseen circumstances, many business owners find that they have accumulated more debt than their business can reasonably pay back under the (often burdensome) repayment terms agreed upon. They may even be contemplating bankruptcy.

If you find yourself in this situation, you are not alone. The Irvine, California-based loan debt attorneys at McFarlin LLP work with business owners like you regularly. Before taking drastic steps like filing bankruptcy and/or closing down your operations, speak to one of our SBA loan debt lawyers. We have experience in helping business owners just like you settle their SBA debt, as well as other types of business debt or negotiate more favorable repayment terms to free up cash flow and business capital.

About SBA Loans

SBA loans are like many other commercial loans that originate through private institutions. The difference is that they have the backing of the federal government through the U.S. Small Business Administration (SBA), a federal agency that provides support to entrepreneurs and small businesses.

SBA loans are secured loans, which means that the borrower has put up collateral in the loan agreement so that, in the event the borrower defaults on the loan, the lender can take the collateral and sell it to satisfy the amounts owed. Sometimes business assets are enough, other times personal collateral is required. Every borrower goes into the SBA Loan agreement with the best intentions and expectations, assuming the business revenue will easily afford them the ability to repay their loan, and therefore are often comfortable putting up personal collateral, such as equity in their home. When things don’t work out as planned, it’s time to call in a professional — a McFarlin LLP SBA loan debt lawyer can help.

How SBA Loan Debt Lawyers Can Help You Save Your Business

What if you could negotiate your SBA debt down to a manageable amount? At McFarlin LLP, our SBA loan debt lawyers are experienced in helping small business owner just like you do exactly that. We may be able to negotiate a reduction in interest rate, a forbearance period to get back on track and in some circumstances even a reduction in principal. Although we can never predict a specific result or make guarantees, there are many more options out there for small business owners than they might realize.

How do we do it? We leverage years of experience and knowledge of the law and applicable regulations. We offer a sound alternative to those fly-by-night debt relief agencies that are high on promises but low on delivering on those promises. We offer a professional and respected approach because we are seasoned attorneys who negotiate deals continuously with all types of lenders. It is often easy for a lender such as the SBA to “blow off” a borrower calling to ask for debt relief, but when a veteran attorney is in contact regarding specific hardship programs and SBA regulations, it is much harder to ignore.

The Attorney Negotiated SBA Debt Settlement Process

We know how to work with your creditors to lower your debt balance. When you have an experienced McFarlin LLP SBA loan debt lawyer advocating for you, creditors know that they have to stick to the rules and treat you fairly. Once we represent you, your creditors will immediately stop contacting you and, instead, will direct all contact and correspondence to us, saving you the hassle and business disruption of creditors. Once they understand that you are under our care, they may be much more likely to accept terms that are favorable to you.

One program you are likely not even aware of is the SBA’s offer in compromise regulations and opportunities. This option is not for everyone, however many businesses do qualify to take advantage of the program but the opportunity is limited and must be arranged carefully. An offer in compromise can be a great way to reduce your principal and your payments.

We will work with you to put together a financial statement, gather all the financial records required under the offer-in-compromise rules, and then present them to both the SBA and the lender. There will almost certainly be some back-and-forth with counter offers until an agreement is reached. No matter how long or prolonged the process, we will stick by your side until we find you a solution.

Southern California McFarlin LLP Lawyers Help You Settle Your SBA Loan

The best time to enter into negotiations to reduce your SBA loan is now, when you have the most debt and the least assets, but still have some cash flow to work with. Waiting too long or filing for Chapter 13 bankruptcy can result in your owing more money in the long run. A McFarlin LLP, SBA loan debt lawyer will take a holistic look at your situation and help you decide whether an offer in compromise or other loan principal reduction mechanism is the best way to keep you out of bankruptcy.

Call the Irvine, California-based attorneys at McFarlin LLP today for a free consultation. Reach out to us online or call (949) 570-5025.

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