Are SBA Loans Helpful?
SBA loans are made to help small businesses for them to get up and running. It can be risky, which actually is why the federal government offers help to entrepreneurs who are not able to get a loan under normal circumstances. This is in fact helpful to our economy.
The SBA does not really make the loans itself, but it helps to make it possible by giving you guarantees on the loans which are made by the other lending institutions. What happens in the case of a default is to where the lending bank contacts you and will explain about the details of the default and how you can actually remedy it.
In case you are unable to make the necessary payments, the lender starts their collection process as what was being stated on the loan agreement. This also includes the sale of the assets that you used in order to collateralize the debt. This likewise includes business assets and if you ever get much larger loans, it could even include your home. The default on sba loan lender can actually close the business and may foreclose the property.
If ever this will reach a point to where the lender used all the options for the recovery, they will make claims to the SBA. If in case the SBA guarantee is going to kick in and that the federal government repays the share of the loan for you.
Once that the lender has been paid, you are then going to deal with the SBA. You will be able to acquire a notice that comes from the SBA that explains to you that you will have to pay the remaining balance or that you should present an “offer in compromise”. It means that in a situation to where the SBA is going to review your financial situation and also accepts less than what is required. The key in these kind of situations is to present a settlement amount that’s substantial and one that is also sustainable. The SBA does not have any interest with the payment plans that you can’t meet. You may further read about lawyers, visit http://www.dictionary.com/browse/attorney.
In case the SBA accepts your offer, everyone will surely be happy as long as the repayments were met. In case the SBA is going to reject the offer, you will be given the opportunity to recalibrate and for you to submit again. There are also cases sometimes where the SBA at sba-attorneys.com will send the account to the treasury department. In such cases, the treasury department have different options.
You may have the option to settle your loan with the treasury department, but this can be a tedious process. This would be the reason why you should look for solutions since the start of the process to when the loan is still at the original lender.
After settling the debt, you then can move forward and be able to focus on your financial health.