By John Pinkney
An SBA loan default is not a small matter. Having an SBA loan default can be financial dread for many small business owners. People who are left in such a slump may be forced to close their business offices. Better yet, they may be forced to sell off all of their business assets. This is only “the tip of the iceberg.” One foolhardy mistake SBA borrowers seem to make is that they will pay back the loan without any plan of action. As silly as it may sound, it is a fairly common occurrence.
Implications of a Government Backed Loan
For some reason, many people believe that a government backed loan will not carry the same implications as one from a financial institution. In some cases, not paying back a government backed loan could be worse. One reason is because you are dealing with the government. In other words, you are dealing with an entity responsible for authorizing the law of the land.
The government is not a small bank entity who will simply write off the default as a charge-off on your credit report. Owing the federal government and not paying them back is the last thing you would want to do.
Contact Our Coachella Valley Business Transaction Law Firm
In the aftermath of a loan default, many people file for bankruptcy, and so forth. It is something no one should have to go through. By exercising greater responsibility over your finances, you are sure to prevent events such as these from happening. There are several alternatives available other than defaulting on loans.
Fortunately, there are options. Our Coachella Valley business transaction law firm is all you need. Having an attorney present will most definitely lessen the burden. Another option is to never get yourself in this situation to begin with. Defaulting on a loan is humiliating and very difficult to recover from.