SBA Loan Default Liquidations
We work with the SBA when business liquidations are needed.
The Small Business Administration (SBA) plays a crucial role in supporting small businesses across the United States however when a borrower defaults on an SBA-backed loan, the agency may be forced to initiate a liquidation process to recover the outstanding debt.
That's where we come in.
When a SBA loan is in default.
When a small business defaults on an SBA loan, the agency will typically work with the lender to explore all possible options for repayment or restructuring the loan. If these efforts are unsuccessful, the SBA will contact a liquidation firm like us to initiate the liquidation process to recover the outstanding balance. This involves selling the business’s assets at auction or onsite, and using the proceeds to pay off the loan.
The liquidation process.
The liquidation process can be complex and time-consuming, but working with an experienced liquidation company like us will make the process much smoother. We understand that the SBA must ensure that the assets are sold for a fair price which is why we are often selected for the important task.
In some cases, the SBA may be able to work with the borrower to find a solution that allows the business to continue operating, such as a loan repayment plan however these efforts are usually unsuccessful. The liquidation process may be the only option.
Our liquidations are always transparent.
It’s important to note that the SBA’s liquidation process is not intended to punish borrowers who have fallen on hard times. Rather, it is a necessary step to ensure that the agency can continue to provide support to small businesses.
The SBA’s liquidation process is a complex and challenging process that can have significant implications for small businesses and the communities they serve. By working closely with liquidators like us, borrowers, lenders, and local stakeholders, the agency aims to minimize the impact of loan defaults and ensure that small businesses can continue to thrive.
Come out stronger on the other side.
Ultimately, the goal of liquidating a business when the SBA loan goes into default is to minimize the impact on all parties involved and to maximize the value of the company’s assets. With careful planning and execution, it’s possible for the borrower to navigate this challenging situation and emerge from the experience strong and resilient.
