What Is an OIC?
A formal proposal to settle for less. The SBA considers inability to pay, the offer amount, and the maximum they could reasonably collect.
How to Submit
SBA Form 770 with: personal financial statement, 3 years of tax returns, bank statements, pay stubs, and narrative. Include the dollar amount and payment terms.
What the SBA Considers
Current income/expenses, asset values, ability to borrow, future earning potential, age of debt, and cost of continued collection vs. accepting the offer.
Frequently Asked Questions
What percentage do OICs settle for?
Typically 10-50% depending on your financial situation. Better terms if the alternative is bankruptcy where they get nothing.
How long does it take?
Typically 3-6 months. Request a collection hold when you submit.
What if the SBA rejects it?
Submit a revised offer or file bankruptcy. Often the threat of bankruptcy motivates acceptance.
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