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Dear Visitor,

Thank you for taking time out of your busy day to visit my website.  I hope you find the information within the site to be informative and helpful.  When I first starting writing articles about SBA default resolution, I was apprehensive about “giving away” too much free information.  Why buy the cow, they say, when you can get the milk for free?  I then realized that the consulting services I provide for my clients in real time goes beyond just words on a page.  Once that realization set in, I have endeavored to cover every question I’ve been asked by actual and prospective clients over the years about settling commercial debt and SBA loan foreclosure conditions.

If you are considering hiring me to help you, there are some important things you should know about me:

My only area of focus is Offer In Compromise for SBA loan defaults. 

I do this to ensure that I remain aware of all the current policies and changes to SBA protocol.  SBA loan settlements require very specific knowledge, so simply having experience with commercial debt settlement is not enough.  Keep this in mind when interviewing potential advisors.

I Pride Myself on Being Responsive and Available

During a time when you are in dire need of help, it’s my job to reduce your anxiety.  While settlement is the ultimate goal, I also know that having an accessible advisor can alleviate the stress of wondering when (or if) you will get a call back.  People frequently reach out to me because they can’t get their SBA attorney on the phone.  I simply don’t allow things like that to happen.

I Don’t Make Empty Promises or Guarantees

These days, it seems that everyone with something to sell makes bold guarantees.  But really, what does it mean for me to say that I guaranty that I will settle your debt if there are no real consequences if I don’t deliver?  For that reason, I make it clear in my consulting agreement that there are no guarantees of success.  Is my track record good?  Yes, extremely good.  Will I do everything in my power to help you? Of course.  Can I 100% guaranty success?  Unfortunately not, and neither can anyone else.  In most cases, my fees and payment terms are better my competitors to begin with, but in the rare case when they are not lower, I will match any reasonable fee structure. If you think I’m your guy, let’s talk.  I can almost always find mutually agreeable terms with borrowers who wish to hire me.

The Buck Stops With Me

Who would you rather have fighting for you: an employee of a company, or the founder and owner of the company?  With me you will always get the latter.  I make all the decision, produce all work products, and personally negotiate every deal.  When I’m hired, I handle all aspects of your file from start to finish. Retain me, and you’ll never be passed to a junior, less experienced employee.

The Only True Insider 

To my knowledge, no other SBA Workout Consultants can claim they know the SBA loan default process from the inside.  I worked for banks for 11+ years, including 2 overseeing a team of workout officers that serviced a $276 Million SBA loan portfolio.

100% “Above Board”

The basis for a settlement is honesty and offering full disclosure, and I will never advocate a strategy that deviates from that premise.  Schemes like selling your business to a friend, an associate, or to a new corporation (which is owned or controlled by you, a friend, or business associate) are all fraudulent.  If you aren’t telling your bank the whole truth about the relationship between you and the buyer, you are probably doing something wrong. 

Thanks for stopping by, and feel free to email me at Jason@jasontees.com or call me toll free at 1-877-436-4533 with any questions you might have.

Sincerely,

Jason Milleisen

Founder & Owner, Distressed Loan Advisors

Seeking Answers To Your SBA Default Questions?  Start Here

Do you have questions about how to handle an SBA default?  This post covers it all: what the entire SBA Offer In Compromise process entails (step by step), while also answering the most common questions that people have asked me over the course of the past 9 years as an SBA default guru.  I’ve settled hundreds of SBA loans, which has resulted in over $50,000,000 saved for my clients.  You can see a small sample of the results I’ve achieved for my clients here.  So yeah, it’s safe to say I’ve seen some stuff.

Who Wrote This Article?

Before we nerd out on SBA default, please allow me tell you who I am. You came to my site, so I’ll explain why I am an expert on this particular topic.  My name is Jason Milleisen, and I am the founder and Distressed Loan Advisors.  I personally handle every single client because, honestly, your Offer In Compromise is that important and I don’t trust anyone else to handle it.

I started DLA in 2009, when it was a side gig that I was running while I was a workout officer for the largest SBA lender in the US.  My job was work handle a portfolio of hundreds of defaulted and delinquent SBA loans, representing several hundred millions of dollars.

In early 2011, I was so busy helping my own clients, that I quit my cushy job as a Bank VP to run DLA full time.  And since then, I’ve done nothing but work on SBA loans.  So that’s pitch on why I’m a big deal when it comes to the SBA Offer In Compromise. Simply put, when it comes to SBA Offer In Compromise, I don’t think anyone does it better than me . Now, let’s get to the good stuff you came here to read.

SBA Offer In Compromise 101 – An Overview

Making the decision to close your business is not easy, but often times, it is absolutely the correct thing to do. Once you make the decision to close your business, the next inevitable question is: Now what?

Close The Business or Sell The Business Assets

If you are closing your business, you are likely aware that there will be some loose ends to tie up. You need a plan to deal with those loose ends. That plan includes working with your bank to get the business closing and liquidation done. Only then can we resolve the issue of your personal guarantee.

In almost all cases, the SBA loan you have is secured with the assets of your business. That can include tables, chairs, ovens, sinks, etc. Before they will entertain talk of settling your debt, your bank will first want to liquidate all the collateral. Note that the one exception is your primary residence. You need to contact your bank. Explain to them that you have closed, and you are willing to cooperate however you can. This will usually entail the bank valuing the assets. If they have value, they will sell them and apply the funds to your loan balance.

Assemble and Submit the SBA Offer In Compromise Package

Once the business closes, and all the business assets are liquidated, you will then be eligible to have your SBA Offer In Compromise considered. This is typically accomplished by submitting the OIC through your lender. Your lender will review the OIC, then forward it on to the SBA (Note: the SBA will want to know if you’ve been cooperative, so play nice with your bank).

It’s important to keep in mind that if your home is being held as collateral, your OIC offer will need to at least cover the amount of equity in your home. If you don’t offer at least that, the SBA is likely to reject your offer. This is because are seeking the highest and best recovery possible.  If they have better alternatives to your settlement offer, they won’t hesitate to pursue them.

Once you submit your OIC package, if your offer is strong enough and the SBA approves it, the SBA will release your personal guaranty and any remaining liens on your home once you pay what you agreed to pay to settle the debt. Keep in mind that if you are paying over time, these releases will only come once you’ve paid the entire amount of the OIC.

Before we begin, let’s discuss a few “best practices”.  You’ll want to keep these in mind as you work your way through the OIC process.

  • Don’t Be A Ghost

When business is going poorly, the tendency is to want to run and hide, especially from your lender.  Don’t do it.  Ignoring your banker is the surest way to tick off her off, and simply invites litigation.  Having a banker who likes you is a valuable asset because they are the bank and SBA’s “ears on the ground”.  They will know more about your file than anyone.  Having a banker who dislikes you can make settlement discussions difficult or impossible.  Return calls, letters, and emails that come from the bank.  It could mean the difference between settling successfully and having a legal judgment filed against you.

  • Save Your Pennies For That Upcoming Rainy Day

    Once the business is closed and the business assets have been liquidated, this is when the bank will consider your settlement offer.  You can only make a settlement offer if you have something to offer (cash and real estate are the two most popular assets), so once you know for sure that you’ll be closing and seeking a settlement, begin preserving cash and looking for ways to raise cash to make an offer.  Friends, family, home equity loans, and credit cards are typical sources of cash.  Yes, these are not ideal options, but in most cases, there are no “good” options.  You are only choosing the best option out of all the crappy options.

  • Get Your Ducks In A Row

    The time to decide what your settlement strategy will be should be well in advance of making an actual offer.  If you are working with a professional like me, together, we can devise a strategy together. I don’t use misdirection or shady “strategies”.  My goal is to make offers that are fair, reasonable, likely to be approved.

  • Ask Permission Before Having A Closing Sale

    While the idea of selling everything in site to raise cash may sound good in theory, make sure your lender is ok with it.  If they think you gave away the store (and their collateral), it could potentially kill your OIC before you even submit it.  The last thing you want is to have your banker ask you to kick in more cash because he thinks you gave your inventory away.

  • Play Nice With Your Landlord

    Next to your SBA lender, your landlord may be taking the biggest hit by you going under, as they stand to lose years and years of rent that they were expecting.  In order to minimize the damage, try to find a qualified tenant for the space.  Whether a landlord will settle depends on a bunch of different factors, such as how easily they can replace you as a tenant, how long the lease was, and if you offered up your personal guarantee on the lease (hint: try not to).

Ok, now that we have those pleasantries out of the way, let’s break the entire SBA Offer In Compromise process down, step by step.

Step 1: Close Your Business and Liquidate The Business Assets

Distressed Loan Advisors (http://www.JasonTees.com) offers expert advice about dealing with SBA Loan Default and SBA Loan Forgiveness, and can be reached at 1-877-436-4533 or loanhelp@jasontees.com.

 

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