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Does everyone qualify for the SBA offer in compromise?

by DLA, Performer

  • Created: July 29, 2011, 11:32 am
  • Updated: June 6, 2012, 4:53 pm
As a consultant who works exclusively with SBA borrowers who are facing default, I wanted to take a moment to explain what the SBA offer in compromise is all about. Every once in a while, I get a call from a borrower who contacts me to find out what I do, and how I do it. In most cases, it's a fairly straight forward answer, except in cases when borrowers can actually afford to repay the debt. So let's be clear: the offer in compromise ( also known as the "SBA OIC") is meant to be an alternative to bankruptcy, and is designed for those who lack the resources to repay their debt in full. In other words, the SBA is not interested in settling for the sake of settling. If you have the means to repay them, either in a lump sum cash payment or via payments over time, the expectation is that you'll do just that. I always tell clients to think about how they would handle it if someone owed them money. If your friend owed you $100, and they had $100 in their pocket, would you be open to taking less than your owed simply because they didn't want to fork over the cash? Probably not....and this is exactly how the SBA feels about it.

PDLoans | Window Shopper | 6/18/2012 - 12:28 pm


I think Offer In Compromise is quite a good thing. People should learn from
their mistakes and not just through everything away including their
responsibility. They should face paying something back no matter if it was
70%. Paying back nothing is no good for anybody.

If they planned their business properly then they wouldn't be in this
situation. Personally I would never advise to lend large sums of money in a
start up business, it's just to risky.

It's far better to test the water first with a small amount of capital and
then build the business up over 6 months. By that ime you will have reached a
place where you can prove your business is profitable and generating income
and there will be far less risk to lenders if you want to expand.

jmay | Window Shopper | 2/6/2012 - 7:14 pm


I think you're better off posting them on your own website but I would post at least 2 per week to keep Google spider coming back after a year that would give you over 100 articles and depending on the length and quality you could have over 300/800 new visitors and possible loads of decent backlinks too.

Stephen Morris | Community Moderator | 8/1/2011 - 6:10 pm


DLA- Thanks for your question. The current community guidelines do not permit blogging. Please see #15 here: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/rules-conduct-and-disclaimer

TexTechnicalSBA | Performer | 12/20/2011 - 11:11 am


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DLA- Thanks for your question. The current community guidelines do not permit blogging. Please see #15 here: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/rules-conduct-and-disclaimer
We realize it is not allowed.  That is why we are asking in plain English, "Why not?"

TexTechnicalSBA | Performer | 12/11/2011 - 8:52 am


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DLA- Thanks for your question. The current community guidelines do not permit blogging. Please see #15 here: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/rules-conduct-and-disclaimer
I really do not understand why the SBA does not allow the free-flow of pertinent information between its members.  They only allow their own views to be publicized.  Is this a good thing, I think not. I want a REAL answer posted as to why the SBA does not allow an open blog/forum/article submission option for ALL its members.

Costan Alexandru | Window Shopper | 8/17/2011 - 12:13 pm


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DLA- Thanks for your question. The current community guidelines do not permit blogging. Please see #15 here: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/rules-conduct-and-disclaimer
I there will be any Rules of Conduit modification and will be allowed blogging , please send me a reply too ... Thanks for great informations shared here ...

Openxcell | Window Shopper | 8/17/2011 - 7:06 am


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DLA- Thanks for your question. The current community guidelines do not permit blogging. Please see #15 here: http://community.sba.gov/community/discussion-boards/introduction/welcome-your-community/rules-conduct-and-disclaimer
Thanks SteveM, my Question was also same. Thanks for sharing this helpful resource.