By Jeff Curl

“Can I get rid of my Small Business Administration (SBA) loan?” I get asked this question a lot from small business owners exploring bankruptcy.  The short answer is “yes.”

But you must be aware of the terms of the loan.  The SBA typically does not give a loan without obtaining some type of personal guarantee in exchange.  At the very least, this means that the loan – and the liability for that loan – extends beyond the business to you personally.  If you own property at the time of the loan, it is common for the SBA to require as a term of lending the money, that you permit the SBA to take an interest in your property such as placing a lien on your home.

This goes to the heart of whether it is the business and/or the person behind the business that files bankruptcy.  Continue Reading »