Get Review Of The Recovery Act's Impact On SBA Lending - Sba

The SBA generally doesn't offer 100 percent forgiveness on 7(a) and 504 loans, no matter how dire your finances are. However, for companies that have had to cease operations, the SBA will consider settlements that have been agreed to between a borrower and their loan issuer.

Yes, you can sell the business. Keep in mind that 100% of the proceeds must go to the bank to pay down the loan balance. Can the sale of the business count towards my SBA Offer In Compromise? No, unfortunately not.

If you contact your lender, you may be able to set up a repayment strategy. On the other hand, if you don't try to make an effort to repay, the SBA will likely seize any collateral you used to secure the loan — and if necessary, the government can take legal action against you.

In addition, if you default on the loan, the Small Business Administration (SBA) may take legal action against you to recover the full amount of the loan plus any accrued interest. The SBA can place a lien on your assets, such as property or equipment, or garnish your wages to collect on the loan.