Allegiance Legal Partners

Treasury Debt Settlement

Has your SBA EIDL Loan been sent to Treasury?

In many cases clients find out all too late that a long forgotten SBA debt was transferred to the U.S. Treasury for collections. In some cases, the transfer to Treasury happens almost immediately, and without much warning, after an SBA offer in compromise is declined.  In still other cases, if you have moved, a written notice may not reach you until years later. Whatever the case, the ALP offers several options that may be of benefit.

Treasury Debt Defense for SBA 7A and EIDL Loans

If your loan has been referred to the U.S. Treasury for collection, this means the SBA is no longer involved with the collection of your loan balance. The Treasury Offset Program (TOP) is a centralized offset program, administered by the Bureau of the Fiscal Service’s Debt Management Services (DMS), to collect delinquent debts owed to federal agencies, including the Small Business Administration. If this sounds bad, it is. 

While there may be a statute of limitations on how long the SBA can wait before they sue, the U.S. Treasury can continue its collection actions against you until they are paid in full — even if that takes the rest of your life.

We provide the following legal services as part of our Treasury Settlement Package:

  1. Review your Case for Settlement though the Department of Treasury.
  2. Review your original SBA loan documents.
  3. Review current TOP collection actions, if any.
  4. Work with Treasury to suspend TOP collection actions.
  5. Collect financial documentation, including a complete lists of assets and liabilities.
  6. Notify the Treasury of your intent to Settle.
  7. Negotiate with the Treasury Department.
  8. Prepare and file a Settlement Package with the Treasury Department.

If you need help with an SBA loan default that has been referred to the Department of Treasury for enforced collection through the Treasury Offset Program (TOP), contact us for a free consultation.

Book your Free Consultation

We look forward to helping you during this difficult and stressful period of your life.