Restructure
60%
lower daily payment
SBA Offer in Compromise
SBA OIC — settle SBA debt for less than the balance owed
Specialized SBA Offer in Compromise practice. Financial package preparation, SOP 50 57 compliance, lender and SBA submissions, and follow-through to formal acceptance and 1099-C close-out.
SOP
50 57 compliance
1544
OIC submission package
3-9MO
typical processing
1099-C
final closeout
THE PROBLEM
OIC is technical work
SBA OIC · APPROVED
$340K → $74K
78% reduction · 504 loan, NJ
Most rejected OICs aren't rejected on the merits — they're rejected on the package.
An SBA Offer in Compromise is a formal proposal to settle the SBA debt for less than the full balance, based on documented inability to pay. The framework lives in SBA SOP 50 57 and the SBA Form 1150 / Form 770 package.
Most rejected OICs aren't rejected on the merits — they're rejected on the package. Missing documentation, inconsistent financials, weak hardship narrative, wrong submission channel. The technical work matters as much as the underlying numbers.
We've been through this enough times to know what packages get accepted. We build them that way from the start.
WHAT WE HANDLE
6 scenarios, opened up
01
Confirm OIC viability based on assets, income, future earnings, and the reasonable collectability standard.
How we run it
- 01Run RCP math (assets, income, future earnings)
- 02Compare RCP vs. balance
- 03Recommend OIC vs. workout
- 04Document strategy in writing
Typical outcome
Avg outcome: clear go/no-go before package work begins
02
SBA Forms 770, 1150, and supporting documentation built to SOP standards.
How we run it
- 01Pull statements + supporting records
- 02Build Form 770 + 1150 package
- 03QC against SOP requirements
- 04Submit complete package
Typical outcome
Avg outcome: zero documentation rejections at submission
03
Lump-sum vs. structured OIC; sourcing of offer funds; hardship narrative.
How we run it
- 01Calculate RCP-supported offer number
- 02Identify offer funding source
- 03Draft hardship narrative
- 04Prepare lump-sum or structured offer
Typical outcome
Avg outcome: offer accepted in 15–35% range
04
Submission through the lender (Tier 1) or directly to SBA (Tier 2 / charge-off stage).
How we run it
- 01Determine submission tier (lender vs. SBA)
- 02Submit through correct channel
- 03Track receipt + reviewer assignment
- 04Manage submission record
Typical outcome
Avg outcome: submission accepted, review begins on schedule
05
Manage SBA counter-offers, additional information requests, and timeline through to written acceptance.
How we run it
- 01Receive counter or info request
- 02Respond within deadline
- 03Negotiate offer up or down
- 04Secure written acceptance
Typical outcome
Avg outcome: acceptance secured in 3–9 months
06
Final settlement payment, lien release, and 1099-C tax exposure planning on the forgiven balance.
How we run it
- 01Confirm acceptance + final payment terms
- 02Fund settlement payment
- 03Receive lien release
- 04Plan around 1099-C exposure
Typical outcome
Avg outcome: clean close with §108 exclusion captured
“
FROM THE DESK
Most SBA OICs are rejected on the package, not the merits. The SOP defines what they need to see — and the offers that get accepted look like the framework, not like a hardship letter.
Our process
From
same-day
intake
to
closeout
Most cases hit resolution between months 3 and 6. We move on day one because deadlines don't wait.
01
30-min confidential call. We pull contracts, balances, and current status of each creditor.
Document review · Leverage map · Triage urgency assessment
02
Letter of engagement on file. We open communication with creditors on your behalf, work to pause aggressive collection actions, and help protect your bank accounts.
Engagement letter · Docket monitoring · Bank protection
03
Our team — and an affiliated attorney from our network when needed — handles every creditor communication. We document everything; you stop fielding calls.
Settlement memos · Counter-offers · Discovery if litigated
04
Signed settlement agreements, lien releases where applicable, and a clean path forward for the rebuild.
Final agreements · Lien releases · Closeout package
“Delancey Street walked us through every step. The settlement saved the business — and our credit.”
WHERE WE WORK
SBA Offer in Compromise cases in all 50 states
FAQ
Common questions
How is an OIC different from a workout?
A workout modifies the debt going forward (longer term, lower payment, etc.). An OIC settles it for less than the balance — the remainder is forgiven. OIC requires documented inability to pay; workout requires documented hardship plus capacity to perform.
How much can I expect to settle for?
Highly fact-specific. We've closed OICs anywhere from 5% to 60% of the outstanding balance, with most in the 15–35% range. The number depends on assets, income, and future earnings analysis under SOP standards.
Is there a tax bill on the forgiven amount?
Generally yes — forgiven debt is reported on Form 1099-C and is taxable income unless an exclusion applies (insolvency exclusion under §108 is the most common). We coordinate with tax counsel to minimize the post-OIC tax exposure.
Will my OIC be accepted?
No one can guarantee acceptance. What we can do is build a package that meets SOP requirements, present a hardship narrative the SBA recognizes, and negotiate an offer in line with what files like yours are clearing at. That's where acceptance comes from.
How long does it take?
Submission to written acceptance: typically 3–9 months. Add 30–60 days for package preparation up front. We give you a realistic timeline at the start of engagement.
What if my OIC is rejected?
Rejection isn't the end. We can revise and resubmit, escalate to higher review, or pivot to a different workout strategy (negotiated settlement, structured payoff, hardship modification). Most of our OIC engagements include a fallback plan from day one.
RESOURCES
Read more on sba offer in compromise
Guide
Negotiation flow
1 Demand
2 Counter
3 Term sheet
4 Settled
How does business debt settlement work?
Step-by-step explanation of the negotiation, timeline, and what changes for your business.
Read article
Defense
VS
Fight
$0
if you win
When to settle vs. when to fight
Not every creditor responds to negotiation. Here's how to read the situation.
Read article
Strategy
Avg. payment reduction
54%
Best business debt settlement companies (2026)
How we compare on track record, pricing, and outcomes.
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GET IN TOUCH
Talk to a strategist about your sba offer in compromise case
Free initial review. We'll look at your contracts, the creditor mix, and what's actually triggerable in the next 30 days. No commitment, no sales pitch — just a real read on your situation.
Direct line
212-210-1851
Picked up by an actual case manager — no phone tree.
Email
info@delanceystreet.com
Replies within 4 business hours, 24/7 for COJ emergencies.
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For uploading contracts, UCC notices, and bank statements.
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