Legal Question in Business Law in Virginia
new business loans
I took out a loan with my bank SBA backed a portion of it now the business is failing and I can't afford the payments on the piece of equipment (crane) how do I get out of the loan? Do I go through the bank and let them reposses or do I try to sell it or what? What does SBA do for me?
1 Answer from Attorneys
Re: new business loans
Try to sell the equipment first at a price that will give you a chance of paying off the loans. If that doesn't work, you might try negotiating a restructuring of the loan with the bank and only permit the repossession as a last resort, keeping in mind that the bank or its assignee may come after you for any deficiency that may result from the sale of the equipment after its repossession.
Don't count on the SBA helping you in any way. They will want their money just like the bank.
Related Questions & Answers
-
Starting a clothing company i am looking at starting a small to medium sized... Asked 4/28/08, 11:42 am in United States Virginia Business Law
-
Signed receipt for goods Can I attempt ( in court) to collect for goods delivered... Asked 4/08/08, 10:23 am in United States Virginia Business Law
-
Non-compete agreements How legally binding is a non compete agreement between a... Asked 3/28/08, 11:58 pm in United States Virginia Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
