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I had a business SBA Loan that had a balance of $250,000 when the company filed bankruptcy in 2003,

Tulsa, OK |

I personally guaranteed the loan but have not heard anything from the SBA for the past seven years. The bank asked me to work with them in selling the assets which i did in exchange for then not enforcing the personal guarnatee. I owed the bank another 2 million in loans and took a year in helping sell the inventory and assets to repay as much as possible to the bank.

Is there a time limit that the SBA can go after an individual that has guaranteed the SBA loan?

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Attorney answers 3


The SBA usually requires you to not only personally guarantee a business loan, they also require collateral from you. Title to your home, your car, all your business assets. We always joke that the SBA will take your first born child as collateral for any loan.

Even if the SBA loan is subject to a defense of the statute of limitations (for specifics, read the state law, usually posted on the state web site), they may still have the right to seize any collateral you posted to guarantee payment of the loan. Ouch!

Read your loan paperwork for the details. Hope this perspective helps!


By all means there is a statute of limitations. Check with a local attorney. Bottom line, the SBA does not have forever to effectuate a collection. If they sit on their hands and allow the statute to run they will not be able to sue you.


The SBA gaurantees the loans. They only suffer a loss when thelender sufffers a loss. Perhaps, by statisfying the loan with the bank, the SBA gauarntee was not called in by the bank so the SBA did not have to pay any money under the gaurantee.

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