You are here:

Business Debt/SBA Colateral Modification(Secured)

Advertisement

Expert: - 3/30/2009


Question
I have pledged colateral with my SBA loan(commercial land).
Its total monthly debt service is $10,0000. At the time
the loan was approved a major home builder was buying this
land and all was well. However, with the real
estate bust they are no longer able to purchase. My business is doing well and I am current with all debt.
Question: Will the SBA allow me to give back the property
to the owner(land was owner financed over 3 years ago)?
This would improve my cash flow and prevent payment
problems to the lender in the near future. The SBA
loan is not seasoned, but we have satisfied a $1mil loan
within the past 4 years. I know it's complicated.
Thanks,
Robert

Answer
Robert:
Thank you for your question. Yes, your matter seems complicated not only in the proper resolution but in the amount owed and the risk implications. Collateral loans are very difficult to alter and it is certainly advisable for you to contact the original lender and the SBA to see if any new programs exist to provide relief. If nothing else you should ask a few months forbearance to give you some breathing room.  Best of luck.

Respectfully,

Christine Janklow

Business Debt

All Answers

Answers by Expert:

Ask Experts

Volunteer

Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

©2012 About.com, a part of The New York Times Company. All rights reserved.