I have a small business in CA. I cannot make the SBA loan payments. What can happen?

Asked almost 3 years ago - Ventura, CA

Will the bank try to take everything my family has (which is not much)? I don't want to do this but I have not had significant work for 18 months.

Attorney answers (3)

  1. Robert Harlan Stempler

    Contributor Level 19

    1

    Lawyer agrees

    Answered . Taking out an SBA loan does not mean you will lose everything. There are exempt assets and you have a certain amount of income that is exempt, but the government is typically the guaranteeing agency and will payoff the bank and they try to get you to pay. My web site has a good summary of your options for a typical private debt case, but SBA loans are a private debt on steriods, as they have even more remedies at their disposal. If you do deal with a bankruptcy attorney on this, be sure that they have specific experience with SBA loans.

    Robert Stempler (Please see DISCLAIMER below)
    www.StopCollectionLawsuits.com

    NOTICE: The above statements are provided for general information purposes only and are not intended as legal... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . You will need to take out the contract you signed with the SBA & look at it. In many instances, the SBA will take both your personal assets as well as business assets as collateral for the loan, which gives them the right to seize these items if you do not make payments.

    Hope this perspective helps!

  3. Stephen M Trezza

    Pro

    Contributor Level 17

    1

    Lawyer agrees

    Answered . Depending upon your entire financial position bankruptcy may be a good option for you. It will protect you from the SBA. Consult with an attorney.

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