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What recourse is available when contractor underbids a project?

We hired a GC to build a new restaurant 2.5 years ago (yes, 2.5 years ago!). We received a loan for $4M from an SBA loan based on their bid. From the beginning of the project, we came to realize that they were not as solvent as they claimed to be, even though the lending bank supposedly vetted them thoroughly. To make a long story short; they came to us today to inform us that the project requires $400k more in order to continue progress and they do not have the funds. The GC suggests that we request an additional $400k on the loan or the project will come to a complete halt. Keeping in mind that we have had to supplement much of the costs throughout the 2 years which we plan on recovering after completion. Additionally, we have been making the full $27k per month payment to the bank as the completion date is almost 18 mos past due. Our funds are drained at this point. . However, as of now, we need this restaurant opened ASAP in order to generate revenue. We CANNOT do anything to hold up this project! We are afraid that lawsuits will stop the project if they walk off the job and hold us up for months which we cannot endure. What recourse or suggestions can be offered?

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