Liquidating sba loans
Shortly after the economic crash of 2007/2008, the SBA loan default rate peaked and a large amount of SBA borrowers were going to their banks for solutions.
However, as the small business world was not prepared for the economic recession, the SBA and lending banks were not prepared for the fallout that would occur regarding SBA loans.
These loans are intended to finance purchases that will quickly and reliably generate cash.
There are many factors that contribute to SBA loan approvability and the length of time needed to close a transaction is longer than a transaction involving seller financing.
The SBA has been providing small businesses with loans since its creation in 1953.
Seller financing frequently carries superior terms and faster execution than traditional financing.
If you can find it, seller financing that is also self-liquidating will save you from having to make a balloon payment and refinance in the future.
The entire process is referred to as SBA loan liquidation.