What happens if you default on an SBA loan?

Is it possible to get an SBA loan if you lost your home to foreclosure and have student loans in default?

  • I want to open a coffee shop someday and want to know if it is an impossible dream since my husband and I lost our home to foreclosure and I have a student loan in default.

  • Answer:

    No way......SBA will not underwrite loans to people that don't have stellar credit.....without any defaults or collections within 6 or more years. The SBA is a government underwritten loan. If you have defaulted on a government insured student loan you will never get a SBA loan. Also, if you have never been in the restaurant business they won't make you a loan to purchase a restaurant.

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Someday yes file bankruptcy chapter 7 or 13 and get your credit cleaned up. To save money and for the down you will need start buying at least the lowest denomination CD at your bank monthly this shows that you can make timely payments (just like credit shows) of the least amount you bought in any given year the fact you have CD and their total amount will raise your credit score for the amount you can borrow (I bought my place without ever getting credit this way as a single woman it took 30 years at nearly minim wage) the interest is tiny but because after 12months one matures every month if you have an emergency you can get to some without paying the early cash in charge. Learn what are needs and what are wants - stick to needs only - good luck

Carol

Crowd funding and class action against student loan terms more onerous than the bank bailouts which is discriminatory, oppressive and just plain wrong. Get angry. Join other students esp law students who can't get work and bring these banksters to heel! Start a riot! Don't take it. Start with Rolling Stone mag which ran a great article. Let me know if I can help. We are in a depression and must band together if we can. I'm sick of youngsters carrying all the weight.

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