DELANCEY STREET

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We're Fund Virtually Everything

We fund business owners nationwide, regardless of industry, credit, or time in business. We fund it all.

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We Provide Multiple Options

We have a lot of different financing options available to our clients. Regardless of your situation, we’ll have a solution for you.

Fast Approval

Our application process is completely online. You can get funds in your bank account in literally 24 hours.

The Working Capital You Need In 24 Hours.

We get you funding. It's that simple. Regardless of credit, income, or time in business - we'll fund you.

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Use our online form or call toll-free anytime to get started. There's no cost, and the application takes only three minutes.

Approval

Receive application approval in as little as 24 hours. There is no credit check required.

Receive Funds

Review and return your signed agreement and get your money in as little as 24 hours.

Recent Business Loans Funded

100K Term Loan

Ambulance Service

Our client bought a new ambulance.
2019 - June
55K Advance

Truck Funded

Our client used the funds to hire new team members.
2019 - February
85K Term Loan

Restaurant Funded

Our client used the funds for restaurant equipment.
2019 - May

Get a Decision in as Little As 30 Seconds

We’re Fast. We Help Regardless of Credit. WE HAVE A SOLUTION FOR YOU.

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We have a completely online application process, which is simple and easy.

Get Offers

We'll match you with the best loan offers we have that are financially responsible.

Get Funded Quickly

We'll fund you the same day you accept our offer.

How Delancey Street Works

Fill Out Our Application

Answer basic questions about yourself and fill out our entirely online application. Each loan has its own online process.

Meet Your Concierge

We'll pair you with an experienced Delancey Street specialist who will reach out to you, and understand your needs. We'll try to determine which financial product is right for you.

Compare Our Loan Offers

We give you a few different loan offers based on your scenario and what options you qualify for.

Choose Your Loan

Once you've chosen a loan that works for you, we finalize it and start getting the documents needed.

Get Funded

Once we get all of the documents back, we'll get you funded ASAP.

We Help You Grow

After you get funded, your Delancey Street concierge specialist will keep in touch to make sure you're happy and doing well.

Business Loans

Get business loans ranging from 3 months to 18 months
No credit score requirement, we have a program for everyone
We can fund up to $5 million in virtually 24 hours

Will The Sba Accept My Offer In Compromise

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Will The SBA Accept My Offer In Compromise?

The SBA offer in compromise program allows borrowers to negotiate with their lenders for a debt settlement agreement. It isn’t the same as loan forgiveness. You must pay off your debt, but the balance might be adjusted to a lower amount than the original loan. There are some essential aspects of an OIC you must understand, such as:

  • Don’t count on loan forgiveness – Other forms of debt relief forgive part or all of a loan. An OIC agreement isn’t the same as loan forgiveness. You should understand how your SBA loan works and what to expect from a settlement arrangement. Total loan forgiveness is unlikely, so you should plan to pay back at least part of what you owe.
  • How to Navigate the Offer in Compromise Program… You should be patient during this process. If the SBA approves your application, you must fulfill your end of the agreement by making the payments you promised. A denial doesn’t necessarily mean you’re out of options. You can reapply. Consider hiring an experienced attorney to improve your chances.
  • Provide Documentation – The SBA requires information and documentation to review your OIC request. This includes tax returns, financial statements, projections, and details on income and expenses. You must prove financial hardship to get approved.
  • Act in Good Faith – Don’t hide assets or misrepresent your finances. Approval depends on full disclosure and acting in good faith. Any deception could lead to criminal charges.
  • Weigh Your Options – An OIC takes time and effort with no guarantee of approval. Make sure it’s your best route before applying. Look at all alternatives like bankruptcy or debt consolidation.

You should be patient during this process. If the SBA approves your application, you must fulfill your end of the agreement by making the payments you promised. A denial doesn’t necessarily mean you’re out of options. You can reapply. Consider hiring an experienced attorney to improve your chances.

Provide Documentation

The SBA requires information and documentation to review your OIC request. This includes tax returns, financial statements, projections, and details on income and expenses. You must prove financial hardship to get approved.

Person reviewing financial documents

Some examples of financial records you may need to submit include:

  • Recent tax returns
  • Profit and loss statements
  • Balance sheets
  • Cash flow projections
  • Personal financial statements
  • Records of income and expenses

Provide as much documentation as possible to verify your situation. The SBA will thoroughly review your finances to determine if you qualify for a reduced payment amount.

Act in Good Faith

Don’t hide assets or misrepresent your finances. Approval depends on full disclosure and acting in good faith. Any deception could lead to criminal charges.

Be completely transparent about your financial situation. Even minor omissions or exaggerations could raise red flags and lead to denial. Approval is based on proving true inability to repay the full loan amount.

Some examples of bad faith actions that could jeopardize your application include:

  • Failing to disclose assets
  • Transferring property to friends or relatives
  • Providing false or misleading information
  • Withholding documentation
  • Making luxury purchases before applying

Avoid anything that might appear suspicious or suggest you are trying to hide income or assets. Acting ethically and providing full disclosure is essential.

Weigh Your Options

An OIC takes time and effort with no guarantee of approval. Make sure it’s your best route before applying. Look at all alternatives like bankruptcy or debt consolidation.

Here are some key considerations when deciding if an SBA offer in compromise is right for you:

Pros Cons
  • Settles debt for less than owed
  • Avoids bankruptcy
  • Preserves credit score
  • Not guaranteed to be approved
  • Application process can take months
  • Requires detailed financial disclosures
  • May still need to pay large portion of debt

Every situation is unique, so carefully weigh the pros and cons. Get advice from an attorney or financial advisor to determine if an OIC is your most strategic option.

Conclusion

The SBA offer in compromise program provides an opportunity to settle your business loan debt for potentially less than the full amount owed. However, approval is not guaranteed. You must fully disclose your finances, prove hardship, and act in good faith. Weigh all alternatives before applying. With proper documentation and legal guidance, you may be able to reach an affordable compromise agreement.

References

  1. SBA Form 1150 Offer in Compromise
  2. SBA Offer in Compromise Requirements
  3. Bradford Law – SBA Offer in Compromise
  4. SBA Offers in Compromise

Will The SBA Accept My Offer In Compromise?

If you owe money on a debt to the Small Business Administration (SBA), you may be wondering if they will accept a reduced payoff amount. This tactic is known as an offer in compromise. Unfortunately, the chances of the SBA approving an offer for less than the full amount are very low.

Declined stamp on money

The reason is that SBA loans are backed by the full faith and credit of the U.S. government. So the SBA is generally unwilling or unable to settle for less than 100% payoff. But that doesn’t mean you shouldn’t try. Here’s what you need to know about proposing an offer in compromise to the SBA.

Background on SBA Loan Programs

The SBA provides support to small businesses through various lending programs. Some of the most common types of SBA loans include:

  • 7(a) loans – For general small business financing needs
  • 504 loans – For purchasing real estate and equipment
  • Microloans – Small short-term loans up to $50,000
  • Disaster loans – For recovery assistance after disasters

Regardless of the program, SBA loans are attractive to borrowers because they offer longer repayment terms, lower down payments, and lower interest rates compared to conventional financing.

Key Points About SBA Loans:

  • Loans are funded by private lenders but guaranteed by the SBA
  • The SBA promises to repay a portion of losses if the borrower defaults
  • Collateral and personal guarantees are often required
  • Default can result in the SBA taking collection actions

Because the government is on the hook for losses, the SBA is highly motivated to recover the full loan balance when borrowers default.

Proposing an Offer in Compromise

Despite the challenges, it still may be worthwhile to approach the SBA with an offer for less than full repayment. Here are some tips for submitting an SBA offer in compromise:

Send a Well-Supported Proposal

IRS Offer in Compromise Form 656

Clearly explain your financial hardship and why you cannot afford to repay the full amount. Provide extensive documentation like tax returns, bank statements, and lists of income and expenses.

Offer a Reasonable Settlement Amount

Proposing to settle a $100,000 loan for $1,000 will likely be rejected. Offer an amount aligned with your assets, income, and ability to get financing.

Suggest a Lump Sum or Short-Term Payout

The SBA usually responds better to lump sum or short payoff timelines versus small payments over many years.

Better Options Less Desirable Options
Lump sum payment Small monthly payments over many years
Payoff within 6 months Payoff over more than 2 years

Act Fast

The SBA may be more inclined to settle if you propose an offer before they begin collection lawsuits and other aggressive actions.

Hiring an experienced attorney to help formulate your proposal and negotiate can also maximize your chances of acceptance. An attorney understands what facts and figures the SBA wants to see.

Other Alternatives if Offer is Rejected

Unfortunately, it’s quite possible the SBA will reject your compromise offer and demand full repayment. If that happens, here are some other options that could help:

Ask About Loan Consolidation or Refinancing

The SBA may allow you to combine multiple loans into one and/or refinance at a lower interest rate. This won’t reduce the amount owed but can make payments more affordable.

Request Temporary Loan Forbearance

You may qualify to temporarily postpone or reduce loan payments for reasons like financial hardship, medical problems, military service, etc.

File Bankruptcy

As a last resort, filing Chapter 7 or Chapter 13 bankruptcy may discharge all or part of the SBA loan debt.

The key is not waiting until your finances spiral out of control before taking action. Be proactive in communicating with the SBA and exploring options – the sooner, the better.

Getting the SBA to approve reducing an outstanding loan balance is certainly an uphill battle. Their priority is safeguarding taxpayer money funding the loan guarantees. But presenting a well-supported hardship case and compromise amount could convince them some payoff is better than none. With persistence and creativity, you may be able to negotiate debt relief with the SBA.

Helpful Resources:

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

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