Like so many matters, unless you concentrate in a specific area  and thus have deep and broad  hands on experience in how to handle the many variations of that theme, you cannot possibly provide the expertise required to do the best job possible.

In other words as I have said in other entry’s, do not do your own SBA workout or your own brain surgery…get an experienced specialist.

The knee jerk reaction to having a troubled loan is to get a lawyer.

Rethink this.

There may be  ancillary legal issues involved requiring a lawyer especially if you allow the loan to default and are involved in the foreclosure process, and even then I suggest the answer is in a business workout not a legal defense.  As to what possible defense could you mount? Usually none.

Overall an SBA workout is a business problem not necessarily a legal issue and requires an expert who has handled many SBA loan workouts and thus has a handle on what works and what does not work…first hand.

The objective is to reduce debt and preserve assets, not just to defend against foreclosure or try to prevent the liquidation of all your assets including your business and home. Reduce debt and preserve assets, that’s the objective.

I have received thousands of visits to my SBA workout blog entry’s in the past few months and have talked to dozens of borrowers needing advice and help, most confronting the spectre of total loss and massive debt.

I have learned much in listening to their sad stories.

1. Most borrowers are getting ineffective and unrealistic advice or no advice at all. It appears that most lawyers, accountants, business advisers do not have the expertise or experience required to properly advise and workout troubled SBA loans. I can say this because the calls I get are reporting many variations of the same inexperienced advice which is frequently either incorrect, misleading, incomplete, sometimes untrue and generally dangerous to the borrowers financial well being.

2. Further, even if armed with appropriate and correct information, the strategies recommended to satisfactorily workout and resolve these loans are inadequate, failing to protect the borrower to the degree possible.

For example, I hear over and over from my callers that they have been told that :

1. SBA guaranteed loans cannot be worked out, so you had best sell your home, cash in your IRA’s and figure out how to pay them off. No!…I don’t think this is the best path for anyone.

2. The banks will not work out an SBA loan because there is a guaranty from the SBA so why should they? Wrong again, of course they will work them out, one simply needs to understand how to work the system effectively.

3. Many banks will not even inform the borrower that the SBA has an actual Offer in Settlement procedure and unfortunately many lawyers, accountants and business advisers are also unaware of this availability, let alone how to implement a strategy around this procedure that will work to your best interest.

4. Most callers are unable to find anyone who knows anything about SBA workouts so they hire an attorney who learns on the job…not good. The blind leading the blind.

Here are the simple facts.

SBA guaranteed loans can be worked out. I have worked out many SBA loans for pennies on the dollar.

We do not have to be led to slaughter as suggested by many advisers, we are entitled to present ourselves in a light most beneficial to our own needs and resolve the debt favorably, affordably and fairly. In fact this is what responsible intelligent business owners and borrowers should be doing.

There may not be many other experts out there who have done enough SBA guaranteed loan workouts to be able to provide you with the service required to do the job effectively.

Distance or location is not an issue, I have done these all over the country. The banks typically act like banks, which is predictable and the SBA has its own universal position applied similarly to all workout situations in the same general way. The rules are the same.

Call me, I will give you the right answers and the best solutions, if you would like I will help you resolve these issues with hands on involvement.

It can be done. 413-549-2966, Norm will arrange a no obligation teleconference.

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