The Treasury Offset Program is not subject to a statute of limitations and can collect on the defaulted SBA loan indefinitely. The Treasury can, among other things, garnish wages, even in states where wage garnishment by creditors is generally prohibited. The Treasury can also garnish Social Security benefits, Federal and Military Retirement, Railroad Retirement benefits and many other non-exempt federal benefits. Learn just how much TOP can take from your benefits below:
1. Federal Tax Refund. Under, 26 U.S.C. 6402(d) and 31 U.S.C. 3720A, TOP can take 100% of your Federal Tax Refund to satisfy a defaulted SBA loan balance.
2. Federal Salary. Under 5 U.S.C. 5514 and 31 U.S.C. 3716, TOP can take up to 15% of your Federal Salary to satisfy a defaulted SBA loan balance.
3. Social Security Benefits. Under 31 U.S.C. 3716, TOP can take the lesser of 15% or amount over $750.00 of your Social Security benefits to satisfy a defaulted SBA loan balance.
4. Civil Service Retirement Benefits. Under 31 U.S.C. 3716, TOP can take up to 25% of your Civil Service Retirement benefits to satisfy a defaulted SBA loan balance.
In short, the TOP program can reach assets no other creditors can. And, again, there is no statue of limitations. TOP will collect the balance in full if it can. Although, its still not too late to make an offer to settle your SBA debt.
- Joint and Several Liability: How did I get stuck with the whole bill from the SBA?
- A Small Payment on your SBA debt could be a Big Mistake
- SBA Loan Assumptions: The Devil is in the Details
- Applying for an SBA Loan with a Felony in your Background: You Better Understand SBA Form 912
- Avoiding Default under an SBA Offer in Compromise
- I defaulted on an SBA loan and they just took my tax refund. Why wasn’t I notified in advance?
- Is it true that I will be barred from accessing SBA loan programs in future if I don’t pay my debt in full.
- I Received a Notice of Intent to Initiate Administrative Wage Garnishment
- The Bank turned down my Offer-in-Compromise. Can’t I just send it to the SBA for review?
- The Bank told me they would not pursue us, but the SBA just sent me a 60-day demand letter. Why is this happening?
- Filling out SBA Form 770: Why does SBA want so much information about my spouse?
- I filed bankruptcy. What do I do about the SBA lien on my home?
- I am just a part owner in the business, will the SBA require me to sign a guarantee on the loan?
- I have an SBA loan and I was just recalled to active military duty, can the Servicemembers Civil Relief Act help?
- Will a criminal record prevent me from getting an SBA loan or modifying one?
- I guaranteed my brother’s SBA loan and he defaulted. Can I still get an SBA loan of my own?
- I am a federal contractor and I defaulted on an SBA loan years ago, can the Treasury offset my contract payments?
- I want to buy a new home. Will the SBA allow me to substitute the lien on my old residence for a new one?
- The SBA rejected my offer, but they sent a Counteroffer. What’s that?
- What is a Waiver? How Signing the SBA’s Unconditional Guarantee affects your rights
- My spouse and I filed a joint tax return and our refund was offset to repay a defaulted SBA loan my spouse guaranteed before we were married. What must I do to receive my portion of the refund?
- What is the SBA 7(a) Loan Guarantee Program?
- I have a CDC/504 Loan. I am in default. Will the SBA Foreclose?
- Can I Refinance an Existing 504 Loan with a 7(a) Loan?
- How can I still be liable to the SBA when my ex-wife assumed this debt in the divorce?
- I just settled with the SBA. Will I owe the IRS because the debt was partially cancelled?
- Franchising and the SBA: Look Before your Leap
- Can my employer fire me if my pay is being garnished?
- What is the SBA Disaster Loan Program?
- The SBA foreclosed on my home. Can they come after me for a deficiency judgment?
- What is Administrative Wage Garnishment and How Much Can the Government Take?
- Will the SBA Accept My Offer in Compromise?
- Administrative Wage Garnishment
- Cancellation of Debt Income
- Criminal Record
- Default Rates
- Military Service
- Personal Residence
- Real Property Liens
- SBA 7(a) Loan
- SBA 770
- SBA Lawsuit
- SBA Loan Assumption
- SBA Loan Default
- SBA Offer in Compromise
- SBA Personal Guaranty
- Treasury Debt Defense
- Treasury Offset Program