WHAT IS A SBA GUARANTEED LOAN?
SBA loans are granted to small businesses that are unable to obtain funding from large financial institutions. Although the program operates through the private sector, the fund are guaranteed by the Small Business Administration.
ARE SBA LOANS PERSONALLY GUARANTEED?
In very rare circumstances will a SBA loan not require the business owner to sign a personal guarantee. Similar to Merchant Cash Advance loan, when you sign a SBA loan personal guarantee, you authorize creditors to seek relief from debt in your personal capacity should the business be unable to keep up with the SBA loan payments.
WHO COLLECTS DEFAULTED LOANS?
When you default on your SBA loan, the lender will seek payment. The lender is merely the guarantor. The lender will try to recover as much as possible and will submit a claim to the SBA for a percentage of the shortfall.
WHAT IS THE COLLECTION PROCESS FOR A DEFAULTED SBA LOAN?
If lenders are unable to collect debt from the business owner, they will pursue legal action to foreclose on any collateral that was put up to secure the loan. Thereafter, they will sue the business followed by the guarantor, and obtain get a judgment against the business, guarantor(s) or both.
CAN SBA LOANS BE DISCHARGED BY FILING BANKRUPTCY?
If you declare bankruptcy, you SBA loans may be discharged. However, keep in mind that once you discharge an SBA loan, you will be eligible to obtain future loans.
CAN YOU NEGOTIATE DEBT SETTLEMENT ON SBA LOANS?
Just like any other business loan, you may enter into debt settlement negotiations with your lender. Our attorneys are well versed in the ins and outs of negotiating debt settlement terms with lenders. Our fee is based on what you save. Schedule your free initial consultation today with one of our experienced SBA debt settlement attorneys.