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2 Replies Last post: Nov 2, 2009 4:14 PM by phanio

Can SBA Loan be xfr to another lender?

Oct 29, 2009 3:45 PM

thai_jack 1 posts since
Oct 29, 2009

Can a SBA Loan be transferred to another lender? Like similar business, we are encountering lower sales and looking to work out loan with our creditors. We have been working on the SBA Loan representing a significant portion of these debt and trying to work out a way to stretch out the amortization from the current 7 years to something longer with a ballon payment in the end of the 7 year loan.

We had no success but have been able to re-negotiate lease terms with our landlord. Is anyone out there running into this situation? Thanks in advance.

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JasonTees.com 18 posts since
Nov 14, 2008

1. SBA Loan Default Oct 29, 2009 10:26 PM

My understanding is that an SBA loan cannot be used to refinance existing SBA debt. My experience is more along the lines of modifications and debt settlement, so definately call around to some lenders to confirm that.

If you are interested in settling your debt, the business would first have to be closed, and all business assets would need to be liquidated. Unfortunately, the SBA is not willing to write off principal to businesses that are continuing to operate.

My business specializes in assisting borrowers with SBA loans, so feel free to contact me for a free consultation. loanhelp@JasonTees.com

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phanio 483 posts since
Apr 7, 2009

2. Re: Can SBA Loan be xfr to another lender? Nov 2, 2009 7:04 PM

Even if you transferred the loan - the orginal terms that were agreed to would stay in place. If you are looking to re-finance - then ask another lender who does SBA loans. I don't think the SBA would mind as they get more fees - but they will still have to re-underwrite it.

Do you know if your current lender will extend your loan? Have you taked to them. I bet they would be more interested in extending the loan than in losing it or you going into default.

Business Money Today
www.BusinessMoneyToday.com

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ForumsFinancing Tips

This Question is Possibly Answered

Can SBA Loan be xfr to another lender?

Oct 29, 2009 3:45 PM

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