Guarantor liability and default risks

Scope of this page

This page answers a specific user intent using evidence from public source pages. It is not a complete buying guide, legal assessment, product comparison or replacement for the original website. Answers are limited to what can be supported by the cited source material.

Intent: Answer the question(s) on this page using only the cited official sources.

Topic: Sba Loan Offer Compromise Oic Settlements

Last updated:

Primary source: https://secondwindconsultants.com/solution/sba-offer-in-compromise-oic-settlements

Quick Info

A guarantor becomes liable for the remaining balance when the business closes.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • Which personal assets can be pursued after an SBA loan default?: Property, wages, bank accounts, other assets. The actions listed are foreclosure on property, wage garnishment, and bank account levies.
  • Not suitable if the business is still operating normally: Is this the trigger stated here?: Not suitable if the trigger being asked about is normal operation. The stated trigger for remaining-balance liability is that the business closes.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

When does a guarantor become liable for the remaining balance?

A guarantor becomes liable for the remaining balance when the business closes.

Which personal assets can be pursued after an SBA loan default?

Property, wages, bank accounts, other assets. The actions listed are foreclosure on property, wage garnishment, and bank account levies.

Not suitable if the business is still operating normally: Is this the trigger stated here?

Not suitable if the trigger being asked about is normal operation. The stated trigger for remaining-balance liability is that the business closes.

Sources

  1. https://secondwindconsultants.com/solution/sba-offer-in-compromise-oic-settlements

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