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What happens if you default on an SBA loan?

What happens if I default on a SBA business loan?

  • I own a business in Texas and I can no longer afford to make the monthly loan payments. The loan was issued by a local bank and its a SBA loan. I am one of four people who is a "guarantor". What does this all mean? Can the bank come after my personal assets? What assets, if any? Who do they go after first? Would it help if I file for personal/business bankruptcy? Please I need some answers and I will of course consult a legal professional, but I wanted the Yahoo Answer's community feedback as well. This is a serious matter, so please make sure your answers are serious as well. Thanks in advance for all answers.

  • Answer:

    I am Mrs Rhoda James from Florida, I want to advise all those seeking for genue loan online to contact this loan firm because I just got mine from there two days ago and someone from yahoo answer refer me to them [email protected]

Benjamin Franklin at Yahoo! Answers Visit the source

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your scores go down big time. it would be harder A LOT harder to ever take out a loan for any business you have. They will sue you for the money you owe, they wont stop persuing you. Theyll get there money believe me. Consult your legal professional would be a wise choice remember a default like this will stay on your report for 7 years. After 7 years is over your back to square one on your credit.

Look at your promissory note. There are default provisions inside of it that fully describe what will happen. A lot can happen. With you "guaranteeing payment of the loan" then yes, the bank can and will go after your personal assets. They can go after all 4 people. Assets can be your home, stocks, etc. What you listed on your financial statement when you got the loan. I would suggest calling the bank that is servicing the SBA loan and try and work out a deal. It will work out much better for all parties involved. Most banks have workout departments.

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