NYC Defense Lawyers

NYC Business Debt Settlement Attorneys 

Providing Critical Legal Guidance for Clients locally including Manhattan, Nassau, and Suffolk and Nationwide

Managing debt is complicated and if things become unmanageable, it may be time to consider debt settlement. At Raiser & Kenniff, P.C. we understand that managing debt in the face of hardship is stressful and often complicated. Our team of legal professionals can work towards the best possible resolution cutting or stretching your debt repayment terms to sustainable amounts. 

When you need trustworthy legal guidance backed by experience, entrust your future to Raiser & Kenniff, P.C. Schedule a consultation with our attorneys online or call (212)-LAW-1500. We offer legal services in English and Spanish.

Understanding Debt Settlement 

Debt settlement is a process intended to reduce the amount a person may owe or to extend the terms of the loan. Oftentimes the contracts are based on cash flow. If cash flow decreases, you may be entitled to adjust the terms of your loan. If cash flow later increases, a one-time lump sum payment offer of a portion of the debt in return for forgiveness on the remaining balance is possible. 

All major financial decisions have pros and cons and businesses must consult qualified professionals. Continue reading to learn more about debt settlement options for businesses and how an attorney can help. 

Merchant Cash Advances (MCAs)

A merchant cash advance (MCA) is a type of business funding that provides quick access to working capital. It is an alternative to traditional bank loans and is based on a percentage of future credit cards or other receivables. With an MCA, businesses receive a lump sum payment in exchange for agreeing to repay the lender with a portion of their future sales. This type of financing can be beneficial for small businesses that need quick access to funds but may not qualify for traditional loans due to poor credit or lack of collateral.

The eligibility criteria for an MCA vary from lender to lender but generally include terms related to the duration of the and processing a set amount of monthly sales through debit and credit cards. The repayment schedule is typically flexible and based on the amount of money received from customers via debit or credit card transactions. The application process is usually straightforward and can be completed online depending on one’s circumstances. Factors that influence approval include the business’s credit score, annual revenue, and time in business.

Merchant cash advances can be especially helpful for seasonal businesses or those with unstable cash flow who need fast access to funds without having to go through the lengthy process required by traditional lenders. However, it is important to note that merchant cash advances tend to have higher interest rates than traditional loans, so borrowers should carefully consider all their options before opting for this financial solution.

These loans tend to be very favorable to businesses who have a reduced cash flow and are in immediate need of a renegotiation in order to better reflect their current financial situation. Businesses, however, should be aware that defaulting on these loans gives the creditors a lot of triggers to force the business owner to pay (including UCC liens, freezing of bank accounts, etc.). For this reason, having a skilled professional guiding you through the reconciliation process is so important. 

Small Business Administration (SBA) Loans 

A small business is defined by the Small Business Administration as a business with firm revenue ranging from $1 million to $40 million and has between 100-1,500 employees. Ventures that fall within these standards could be eligible for a Small Business Administration (SBA) loan. These loans can provide opportunities to renegotiate settlements and offers with lenders. 

Renegotiating Settlements and Offers 

Small Business Administration (SBA) loans are a unique financing option designed to help small businesses obtain funding that might be challenging to secure through conventional bank loans or other financial avenues. Unlike traditional loans, SBA loans are partially guaranteed by the U.S. government, which reduces the risk for lenders and encourages them to offer more favorable terms to small businesses.

Eligibility and Qualifications

To qualify for an SBA loan, businesses must meet specific eligibility criteria, such as being a for-profit entity, operating within the United States, and demonstrating a genuine need for financing. Additionally, applicants must have invested their own time and resources into the business and exhausted other financing options. Collateral requirements vary depending on the loan type and size but may include personal guarantees, real estate, or other business assets.

The application process for an SBA loan typically involves submitting a comprehensive loan package, including financial statements, business plans, and relevant documentation, to an SBA-approved lender. The lender then reviews the application and, if approved, works with the SBA to secure the government guarantee.

The partial government guarantee allows lenders to offer lower interest rates and longer repayment periods than conventional loans, making SBA loans more affordable and accessible for small businesses. Flexible terms also enable business owners to tailor their loan structure according to their specific needs and growth plans.


However, there are potential risks associated with SBA loans, such as high upfront fees, strict repayment schedules, and the possibility of personal liabilities due to collateral requirements. It is essential for borrowers to carefully evaluate these factors and weigh the benefits against the risks before committing to an SBA loan.

Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a loan program designed to provide financial support to small businesses affected by the COVID-19 pandemic. The primary purpose of these loans is to help businesses maintain their workforce and cover essential operational expenses during times of economic uncertainty. Eligible businesses include those with 500 or fewer employees, including non-profits, self-employed individuals, and independent contractors.

PPP loans can be used for payroll costs, rent, utilities, and interest on mortgage obligations, helping businesses sustain their operations amidst the crisis. The program was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, aiming to protect small business owners and their employees from the devastating impacts of the pandemic.

A key feature of PPP loans is their potential for forgiveness, which means that borrowers may not have to repay the loan if they meet specific criteria. To qualify for forgiveness, businesses must use at least 60% of the loan proceeds for payroll costs and maintain employee headcount and compensation levels during the covered period. PPP loans come with a low-interest rate of 1% and a maturity of five years for any unforgiven portion.

To apply for a PPP loan, businesses must apply form through an approved lender, such as a bank or credit union. The applicant must provide documentation to demonstrate their payroll costs, number of employees, and other relevant business information.

Loan Fraud 

While loans can be a tremendous resource for business owners struggling under the weight of debt, there are risks. Improper use or classification of funds could result in legal troubles and even criminal fraud charges. 

PPP Loan Fraud 

Federal prosecutions for PPP loan fraud have been on the rise as the U.S. government actively investigates and pursues cases involving the misuse of funds provided through the Paycheck Protection Program (PPP). The Department of Justice (DOJ) and other federal agencies, such as the Small Business Administration (SBA) and the Federal Bureau of Investigation (FBI), are collaborating to identify businesses and individuals who have fraudulently obtained PPP loans by providing false information or using the funds for unauthorized purposes. 

Common fraudulent activities include inflating payroll costs, misrepresenting the number of employees, or using the money for personal expenses rather than legitimate business needs. Those found guilty of PPP loan fraud can face severe penalties, including imprisonment, substantial fines, restitution, and forfeiture of assets. 

To combat fraud and protect taxpayer funds, the government encourages businesses and individuals to be vigilant and report any suspected fraudulent activity related to PPP loans. By prioritizing these investigations and prosecutions, the federal government aims to ensure that the relief provided by the Paycheck Protection Program reaches its intended recipients – small businesses struggling to survive during the COVID-19 pandemic.

COVID Loan Fraud 

While the government created options for those struggling due to the pandemic, loans made available were meant to be used only for specific circumstances. As mentioned previously, PPP loans were only intended for businesses to ensure paycheck protection for their employees. However, misuse of PPP loans by individuals who fraudulently filed under a fake LLC could, and in many cases, have faced criminal consequences. 

COVID Relief Fraud 

Additionally, COVID relief funds granted under the CARES Act came with specific guidelines. Those who received relief were required to report it on their taxes. As with almost all forms of income, failure to report income can result in tax fraud charges. Tax fraud may result in heft fines and potential jail time for delinquency. 

The Importance of Legal Support

When facing debt, businesses and individuals must consult a qualified professional. An attorney can act as a defender and advocate throughout legal proceedings and guide clients to the most optimal solution for their circumstances. 

Raiser & Kenniff have over 100 years of combined experience handling cases ranging from assisting with debt settlement to helping clients navigate fraud charges. We work with our clients to help them determine the right strategy for them while protecting their best interests. Our founding partners have worked as prosecutors and defense attorneys, meaning they bring a unique strategic advantage to their client’s cases. Recognized as the top attorneys in the US, our award-winning team is available to serve our clients 24/7 to ensure that their questions are answered day or night. 

When you are ready to put your case in our trustworthy hands, contact our NYC business settlement attorneys for a risk-free evaluation.

Lawers That Get Results

The bottom line is we will help you. With the team at Raiser & Kenniff, P.C. representing you, you can have that peace of mind knowing you will be treated fairly and with respect. We will fight for you. 

“Steven M. Raiser is the managing partner and litigator assigned for trial in the unlikely event that one becomes necessary.”

Steven M. Raiser & Thomas A. Kenniff

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