SBA Collateral

[rmlholdings]

What is the name of your state (only U.S. law)? Florida

I received an SBA loan 3 months ago for 750K and do not have a problem paying the note. What I am having a propblem with is paying the note on the Development property I own which the SBA took as collateral. If this property is foreclosed will the bank and or SBA call in my loan even if I have the ability to pay?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Florida

I received an SBA loan 3 months ago for 750K and do not have a problem paying the note. What I am having a propblem with is paying the note on the Development property I own which the SBA took as collateral. If this property is foreclosed will the bank and or SBA call in my loan even if I have the ability to pay?

**A: yes they will. It is standard protocol to protect their collateral interest.

 

[rmlholdings]

The collateral is not worth any more than the note against it - it is development property. You are saying my bank would rather take a 750K hit (less the SBA guaranty) rather than have me continue to make monthly payments?