AboutTrish Hullen Expertise I am a specialist in gas station financing - acquistion, refinance, construction, site improvement. I am able to answer questions specifically about the petroleum industry however I do not have expertise relating to non-petroleum questions.
Experience 15 years working with a major lender financing gas stations.
Organizations Petroleum Marketeers Association
National Convenience Store Association
Education/Credentials Chapman University, California - Degree in Business Management and Finance.
Awards and Honors Award from Citigroup - 2 years as highest performer
Expert: Trish Hullen Date: 6/25/2008 Subject: sell gas station business
Question I have a SBA 504 loan for a gas station business and property. I am about to close on the sale the business with a lease to the property, which i will be the landlord. I know that i am supposed to be an operator of the business under the sba loan, and that any changes should be notified to my loan officer. Can i default on the loan by not notifying my loan officer?
I have never had any correspondence since the inception of the loan, about 2 years ago. I have never submitted any tax returns, nor have they asked. I would rather not refinance the loan because of prepayment penalties with the 504 loan. Will this lead to disaster if i sell my business under the sba 504 loan?
Answer John,
The loan documents you signed most likely has language that makes it an event of default in the event you no longer own the business. I would read them carefully to see if there is such language.
If there is, you have 2 choices. Contact the lender and advise them that you've sold the business but retain the real estate or do not advise.
This is more of a personal issue than a business issue.
