Tuesday, June 27th 2017

Question

What happens if you default on an sba loan?

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Answers (4)

8th Feb 2010 by Bev

I understand what you are saying. Can you offer the bank a smaller amount to settle the note?

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8th Feb 2010 by Bev

What if both parties do not have any money and the collateral which is real estate has dropped in value from the original mortgage amount? Is it really worth it to file bankrubtcy?

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8th Feb 2010 by Bev

If the business in question is closing and the sba loan will not be able to be repayed and the real estate is below the value of the original mortgage then what would happen?

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8th Nov 2009 by Amelia Timbers

Like any other type of loan, defaulting on an SBA loan puts the borrow at risk for a variety of negative consequences. The first most likely consequence is that the SBA will contact you and give you options to cure, or repay, the delinquent missed payments. It is in all parties' best interests for the borrower will repay the loan. The SBA provides lenders with safety nets for missed payments, which lessens the incentive for lenders to demand immediate repayment. However, if the payments are not cured, the lender will eventually require immediate repayment of the loan. If the borrower cannot repay the entire loan immediately, the lender will probably seize the collateral put up for the loan, meaning the personal assets of the entrepreneur or the assets of the business. This may lead to either personal or business bankruptcy, or both. Do not miss your loan payments! If you know you will miss a payment, contact the SBA and/or your lender IN ADVANCE. There may be options to arrange a payment plan whose requirements you can meet.

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6th Nov 2009 In Legal 4 Answers | 2735 Views
Subjects: sba loan default,

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