What are the requirements for an SBA change of ownership?

At a minimum, SBA requires an equity injection of at least 10% of the total project costs. This means that in order to qualify, you'll need to provide 10% of all costs required to complete the change of ownership, including working capital needs regardless of the source of funds.

Eidl Loan Rules In King

Category:

Small Business - Loans and Lending

State:

Multi-State

County:

King

Control #:

US-00193

Format:

Instant download

Description

The Assumption Agreement is a legal form facilitating the transfer of a borrower's loan obligations, specifically under the Eidl loan rules in King. This form is crucial for individuals or entities, referred to as Assumptors, who wish to assume the existing debt of the original borrower from the Small Business Administration (SBA). Key features include the detailed outline of the obligations, the requirement for SBA consent, and provisions for modifications of the loan terms. Users must ensure that both the Borrower and Assumptor are fully aware that the original borrower remains liable even after the assumption. The document highlights the necessity for notary acknowledgment to validate the agreement legally. Filling and editing involve clearly stating the amounts, dates, and roles of all parties, ensuring accuracy in all entries. Attorneys, partners, owners, associates, paralegals, and legal assistants can utilize this form to navigate loan assumptions for clients, aiding in business asset transfer, refinancing strategies, or partnerships involving debt responsibilities. This form ensures compliance with SBA regulations while providing a structured approach to the assumption process, making it a valuable tool in legal and financial transactions.

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FAQ

There is no provision for forgiveness on these loans, nor should anyone expect that there will be. The EIDL is a decades-old program, and if they forgive loans for this particular disaster, then borrowers for every other EIDL program are going to expect forgiveness on their loans as well. It's not happening.

At a minimum, SBA requires an equity injection of at least 10% of the total project costs. This means that in order to qualify, you'll need to provide 10% of all costs required to complete the change of ownership, including working capital needs regardless of the source of funds.