Offer In Compromise

In this article, Jason Milleisen, founder of Distressed Loan Advisors, highlights a critical mistake borrowers make that can ruin their chances of settling SBA 7A or 504 loans: disposing of business assets without lender approval. He emphasizes that when a borrower takes an SBA loan, the lender has a lien on all business assets. This security interest requires borrowers to get lender permission before transferring or disposing of assets, even if the business has closed. If borrowers fail to do so, lenders may see it as a “fraudulent conveyance,” especially if the assets have any value. This misstep can severely hinder any settlement negotiations. Jason’s advice: borrowers should notify their lenders of the business closure, coordinate an inventory or desktop appraisal of assets, and obtain explicit permission for any disposal. This keeps options open for a potential settlement. Finally, he encourages viewers to like and subscribe if they find the content helpful.