Every so often, I get thrown a curveball by a bank, the SBA or both. Today’s story is about how the SBA and Bank failed to communicate, and how my poor client fell through the cracks (a very expensive crack!). It all started when my client got a 60 day letter. As I usually do, I contacted the SBA. The SBA referred me back to the bank. So I contacted the bank. I submitted a settlement offer, and was told it had been approved by the bank, and now we were just waiting on final decision from the SBA. After 2 months went by, I started to get concerned and followed up with the banker, who assured me that the SBA was just being really slow. After 3 months, I went right to the SBA to make sure there wasn’t a problem (note: the SBA gets cranky when people bypass the bank, so this is something I seldom do). To my surprise, the SBA did reply. Also to my surprise, the SBA said they had no settlement offer, and the file had been referred to Treasury.
After a bunch of emails flying around, it was determined that the bank had failed to notify the SBA of their intention to consider a settlement offer. As a result, the file automatically was referred to Treasury (aka the black hole where settlements go to die) for servicing. Normally, I am not a squeaky wheel kind of guy. If my client is declined for a legit reason, I can live with their decision, even if I don’t agree. But this one really annoyed me. My client had done everything that had been asked of him, and yet, due to the banks error he was being punished. I did some digging and finally, 9 months after we started the process, my client just got a letter stating the OIC had been approved! It looks as if someone in SBA management looked at the situation, and applied something rarely seen in government….common sense!
While it was a grind, this file is a prime example of the value I can bring to a workout situation. One never knows going into a settlement how it’s going to unfold, but I am confident in saying that this loan would not have been settled if it weren’t for me. Go me. I’m the best. Ra Ra Sis Boom Ba. Ok, that’s enough self-congratulations. But seriously folks, the SBA OIC process can get messy and complicated.