Sba Eidl Loan Rules In California

• Category: Small Business - Loans and Lending
• State: Multi-State
• Control #: US-00193
• Format: Word; Rich Text

Description

The Assumption Agreement is an essential document for borrowers of the SBA Economic Injury Disaster Loan (EIDL) program in California. This form facilitates the transfer of loan obligations from the original borrower to a new party, known as the Assumptor. Key features of this form include the acknowledgment of the existing debt to the Small Business Administration (SBA), and the Assumptor's agreement to assume all liabilities associated with that loan. Filling out this form requires precise details regarding the original loan amount, payment terms, and relevant agreements. It is crucial for the involved parties to understand that the original borrower remains liable even after the assumption. The target audience for this form includes attorneys, partners, owners, associates, paralegals, and legal assistants who help businesses navigate SBA loan management. This document applies in scenarios where business ownership changes or a partner takes on responsibilities for existing liabilities. Properly utilizing this form can ensure compliance with SBA regulations and facilitate smoother transitions in business operations.