f your SBA loan has been referred to the Bureau of the Fiscal Service for collection, you may be facing Administrative Wage Garnishment (AWG). Learn how the process works, important deadlines, and the administrative options that may be available based on your circumstances.
Defaulting on an SBA loan can be be stressful, especially after the debt has been referred to the U.S. Department of the Treasury for collection. Many borrowers are surprised to learn that the federal government has administrative collection tools that do not require filing a lawsuit before taking action. One of the most significant of these tools is Administrative Wage Garnishment (AWG), which allows the government to garnish a portion of your disposable pay under certain circumstances.
Receiving a Treasury notice does not necessarily mean wage garnishment is unavoidable. Depending on your circumstances, you may have the right to request a hearing, establish a repayment agreement, submit an Offer in Compromise, or pursue other administrative resolution options. Acting promptly and understanding the available processes can make a significant difference in how your case moves forward.
This guide explains how Administrative Wage Garnishment works after an SBA loan default, the deadlines you should be aware of, and the administrative options that may be available to help you resolve your federal non-tax debt. Our goal is to provide clear, educational information so you can better understand the collection process and make informed decisions based on your individual circumstances.
For additional resources about Administrative Wage Garnishment, Treasury Offset Program (TOP), SBA loan defaults, and other federal non-tax debt topics, visit https://www.nontaxdebthelp.com/.
