I am losing faith.

I thought the SBA mission was all about supporting the small business owner. I am beginning to think otherwise. Recent experiences have indicated that they are on their own alternative mission and have forgotten their purpose. It looks like they have lost their way. How unfortunate! It is a huge change in policy if this is what I am seeing. I hope it’s just a few runaway renegade SBA decision makers. I am worried as no decisions are being made by committees to prevent such abnormal variances. It seems I am seeing this alternative mission too often to ignore.

The current issue is this seemingly standard response, “We will wait a few years and see how you fare then and will make demands down the line. If you have somehow recovered, you may be worth more then. We will reject your Offer to Compromise now and wait. Let’s see what happens in a few years.”

This is not the mission of the SBA. Their own program, the Offer in Compromise program, is intended to determine the “present net liquidated worth of the borrower and that is the determining factor of what is an acceptable Offer in Compromise.”

How does “net present liquidated worth” compute to “…we will wait a few years and see what happens. We think you may be worth more down the line so we will leave the liens on and get back to you in the future, we can wait you out”. So in the end, the SBA is more aggressive and more willing to see the destruction of the borrower than the worst bank. In fact the banks would not be allowed to do this by the FDIC. Upon review, the bank would be required to liquidate the assets or workout the debt directly. They would not be allowed to simply wait and see what will happen a few years down the road.

So, the small business owner cannot refinance his home or even sell it, cannot borrow again, and cannot do anything because the liens remain on himself and his home. Is this an Offer in Compromise program? No, it’s a retribution and punishment program.

Let’s see the score card. Recently, a retired school teacher wiped out by Katrina was totally refused an Offer in Compromise with a full demand for repayment despite the impossibility of such. What’s with the SBA? Are they now trying to eliminate the small business owner? Certainly sounds like it. What’s going on up there? Is this the way we support small business owners? I don’t think so.

Fortunately for our clients, we fight this regressive attitude and with diligence, perseverance, tenacity and vision we overcome this bad behavior. But what about those we do not represent? What will happen to them? Apparently when you pay for the SBA guaranty, it is intended to help the banks, not you the small business owner.

Contact us if you’re stuck and we will arrange for a no-obligation teleconference to discuss your issues and provide strategies that will work.

Author: Don Todrin
Article Source: EzineArticles.com
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