It's important to keep in mind that if your home is being held as collateral, your OIC offer will need to at least cover the amount of equity in your home.

If your offer is strong enough and the SBA approves it, once you pay what you agreed to pay to settle the debt, the SBA will release your personal guaranty and any remaining liens on your home. When evaluating a settlement offer, the SBA asks for a number of financial documents.

Keep in mind that if you are paying over time, these releases will only come once you've paid the entire amount of the OIC. Jason offers expert advice about dealing with SBA Loan Default and Forgiveness, and can be reached at 1-877-436-4533 or [email protected] The intention behind asking for all the info, aside from making you go blind on paperwork, is that the SBA wants to ensure that you truly cannot afford to repay the debt in full.

In most cases, the flexibility will come in the form of a loan deferment.

While the SBA wants lenders to be flexible, the lender still needs to have reason to believe that your business will survive if relief is granted.

(Note: the author is not an attorney, and this article should not be construed as legal advice.

Readers are strongly encourage to speak with a qualified attorney for all legal matters) Quite often, we get calls from borrowers in a panic.This will usually entail the bank valuing the assets, and if they have value, they will sell them and apply the funds to your loan balance.Once the business is closed, and all the business assets have been liquidated, you will then be eligible to submit an Offer In Compromise (OIC) to the SBA.Making the decision to close your business is not easy, but often times, it is absolutely the correct thing to do.Once you make the decision to close your business, the next inevitable question is: Now what?If you are closing your business, you should establish a plan. Presumably, the SBA loan you have is secured with the assets of your business.