SBA Default/Liquidation Questions - SBA Guarantee

April 07, 2025
by a searcher from California State Polytechnic University - Pomona in Pomona, CA, USA
Currently in default on an SBA 7a Loan. Hoping in the future to post full details on the process and cause of the default so the community can learn from what we have gone through.
I have some questions that perhaps the Searchfunder members might have some feedback on:
We believe the SBA lender acted neglegently through the default and liquidation process, resulting in the worst-case value being acheived for assets, among other negative impacts they made. Would there be any benefit in a borrower petitioning the SBA to have the SBA Guarantee declined, forcing he lender to take on the total impact of the defaulted loan?
Additional question; how soon should you begin the discussion of an Offer In Compromise? I have heard some handle this initially through the lender but I thought the OIC was handled directly through the SBA after the guarantee is finalized and the SBA takes over managing the loan.
from Arizona State University in Houston, TX, USA
from Texas A&M University in Austin, TX, USA