What can the Treasury take to satisfy a defaulted SBA loan balance?
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.