National Student Loan and Credit Report Debt Attorney
Starting a new business requires an initial investment of capital. In recent years, rather than pulling from savings, people are taking out small business loans often through the Small Business Administration (SBA). While there is certainly nothing wrong with taking out a loan to fund the initial start-up costs or ongoing operating expenses, the first couple of years operating a business are often unpredictable. And recent economic conditions have made small businesses even more unpredictable, even for experienced business owners.
Accumulating debt in the beginning can be fatal for a small business. And falling too far into debt can accrue insurmountable interest. Instead of letting your debt destroy your small business or declaring bankruptcy, let the lawyers at McCarthy Law guide you through the debt settlement process.
You want to avoid bankruptcy, if at all possible. Declaring bankruptcy destroys your credit and will make it very difficult to get a business loan in the future. The good news is there are several other small business debt relief options that can free you from debt and keep your small business running.
Over the years we have found that people of all walks of life were deeply affected by the most recent financial crisis that took place in the United States. However, I have found that a large portion of those people were small business owners. Not only were these small business owners defaulting on their business credit cards but they were also defaulting on their secured loans through the Small Business Association (“SBA”).
SBA loans are loans that are lent through private institutions but that are backed by the Federal government through the SBA. Since these loans are back by the Federal government, SBA loans are secured loans that list collateral in the loan agreement so that if you were to default, the lender had the right to recover what is owed through the sale of the collateral. However, if what is owed is more than what the collateral can be sold for – you are still liable for the deficiency. This collateral can be your primary residence, your business assets, your car, etc.