From the article: Small Business Administration Loan Programs
The Small Business Administration has a history of being difficult to deal with in the recent past. The amount of loans they have guaranteed have been dropping in recent years. Have you tried to get a business loan guaranteed by the SBA? If so, what has been your experience? Share Your Experiences
SBA WARNING do not guarantee homes !
- DO NOT have spouse cosign, that is a bank tactic! It is not mandatory to seal the loan. If your business fails for what ever reason and you default on loan you will NEVER get them to remove your liens on your property! Dont believe them whatever they say. Filing chapter 7 will NOT get any liens removed either. Learned the hard way. If there is a way out let me know. When i do sell home the SBA will get all the profits. From Rosemary, About.com Guide to Business Finance: Please note: The SBA does not say that they guarantee home loans. They only guarantee business loans. The only thing I can think of with regard to the individual that posted this note is that he/she rolled their home into a business financing loan - something I, as a finance professional, would never recommend as that puts your personal assets at great risk. This is probably the reason your spouse had to co-sign - if her/his name was on the house. Another reason is if the spouse's income was required to obtain the loan. TO THE POSTER: The one thing I do know about this is, when you sell your home, you WILL be able to get the lien removed from your record, but not until. Be very proactive in trying to sell your home and really work with the realtor. The sooner you can sell your home, the better off you will be! Please contact me if you need anymore help. I will try to help or point you to someone who can. Good luck.
- —Guest REM
Manager/Owner
- The bank lender was very incompetent. The 5 weeks of renovating restaurant took 1 year, funds were released drop by drop, we had no control of funds, lender lost documentation, missing files, treating us like criminals. Had an American Dream nightmare. We lost even our life savings. Lender says SBA loan approval is a privilege, it is NOT. It will make you sick to the stomach. Winner is the bank lender. We had been warned by friends to also were in the same SBA loan situation. We wanted to op out before final approval and funding but bank said SBA will sue us and be penalized. It make us all sick short of a heart attack
- —Guest Marie
