Running a business can be tough on Slot deposit– it doesn’t always work out the way we planned. This can leave us worrying about paying back those pesky business loans. This guide is crafted to help anyone who …
Has defaulted on an SBA loan
Is considering settling on an SBA loan
Is concerned about SBA loans and bankruptcy
Personally guarantees an SBA loan
Is conducting research before taking out an SBA loan
I’m Jason Milleisen, the founder of Distressed Loan Advisors. As an SBA default expert, I use my wealth of professional experience to negotiate settlements. Thanks to my stint as a workout officer for the largest SBA in the U.S., followed by the past 10 years of working directly with borrowers as a consultant, I’ve learned a lot I can share.
If you’re looking to cross a bridge (or perhaps a gauntlet would be more appropriate), you have to start somewhere. This means taking that crucial first step of admitting to yourself that failure (and the resulting default) is a real possibility. Where do you get started when you’ve defaulted on your SBA loan? How do you get from zero to one?
Take a look in the mirror
While it may be emotional to have your SBA loan hanging over you, consider your options wisely. Before the SBA will even sniff at a settlement, they need to know you’ve already done everything in your power to pay off your loan in full.
Your loan is likely secured by your business assets. If the collective value of these business assets will cover the loan, you’ll need to sell them to repay the full amount. If you’re lucky, you might not have to sell everything, and your business can still continue to operate on bare-bones resources. The reality is that, in most situations, the business folds.
In the vast majority of situations, selling the business assets won’t cover the full loan. You’ll need to close your business as well as selling off the assets.