SBA Loan Settlement: What About Your Landlord and Seller Note?

November 22, 2011 by  | Leave a Comment Filed under: Loans 

In addition to SBA guaranteed debt, many failing businesses must deal with two other obligations that aren’t discussed too much: landlords and former owners who agreed to finance part of the acquisition cost. In my experience, the more creditors that a borrower has, the more complicated (read on...)

The 18 Month Default Rule, Be Careful

April 1, 2011 by  | Leave a Comment Filed under: Debt 

A new benchmark has become apparent with the SBA for loans in default; it exists also for leases, secured bank loans, lines of credit. It is what we call the “18 month rule.” It goes like this: If a borrower defaults within 18 months of taking out the loan, there is a presumption of (read on...)

Defaulted Bank Loan Workouts

April 1, 2010 by  | Leave a Comment Filed under: Loans 

Most people frequently speak about SBA guaranteed loan workouts which have their own specific requirements. There are, however, an enormous number of traditional secured and unsecured bank loans which are in default and require workouts resulting in debt forgiveness. There are consulting (read on...)

SBA Default – What the SBA Guaranty Means to the Borrower

January 13, 2010 by  | Leave a Comment Filed under: Loans 

Lately, we’ve been hearing from a lot of upset business owners. They are not upset because their business has closed or is struggling – they have come to terms with the economic downturn. Instead, they are upset because they feel that they were misled by their lender when they first (read on...)

SBA Loan Default – Don’t Wait Until It’s Too Late

December 18, 2009 by  | Leave a Comment Filed under: Loans 

Very often, we get inquiries from borrowers who are behind on their SBA guaranteed loans. We reach out to them, and are met with silence. As in “I’m a little concerned so I emailed you, but not so concerned that I’ll actually make the effort to get back to you.” A few (read on...)

What Not to Say to Your Lender After an SBA Loan Default

December 8, 2009 by  | Leave a Comment Filed under: Loans 

You want your lender to be on your side, not working against you. – It’s not my fault, the economy is terrible! Your lender hears this excuse from everyone, and she is tired of hearing it. Yes, the economy sucks, but a weak economy doesn’t mean you are entitled to an infinite (read on...)

The SBA Cannot Even Give Money Away Through the Banking System

November 7, 2009 by  | Leave a Comment Filed under: Loans 

The banks have virtually shut down, especially commercial lending. They may as well hang an out of business sign on their door, but should probably ad the following; we are out of business because we do not believe in our economy at all. Why else would they refuse to lend? A very good business (read on...)

What Can a Bank Do to Liquidate Collateral For a Defaulted Loan?

October 29, 2009 by  | Leave a Comment Filed under: Loans 

Typically and in most instances the banks have only one plan. Foreclose, take possession and liquidate by auction. They have few options or alternatives. It is expensive as lawyers, auctioneers, advertising, insurance, storage, etc. must all be paid while liquidating, which of course reduces the (read on...)