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Business Loan Sold to Investment Co. by SBA

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PLEASE HELP! My (Alabama) business is financed directly thru SBA. Last fall, SBA sold the loan to an investment company. As my business is seasonal, I usually get behind in payments during the fall and am able to catch up in the spring. When the loan was sold, I was behind in payments. When I was notified of the sale, I contacted the investment company to explain the situation and continued paying as I could. In March, I called to say I was sending a payment and would be able to send two more within the month.(This would bring me current) At that time, I was told they were calling the loan and it must be paid in full or they would foreclose! At this point, I am looking at having to file bankruptcy for the business as well as personally! As far as I know, SBA and the investment company are within their rights to do this, it just doesn't seem fair! Do I have any rights here? What is the Small Business Regulatory Fairness Act and does it apply in my case? I have been paying on this loan for 8 years and SBA was very understanding of the seasonal nature of the business. Unfortunately, the investment company is not. They will not allow me to catch up the payments to withdraw the foreclosure. Any advice you could give me would be most appreciated.


Senior Member
As you say the loan documents give them this right, I fear you may be out of luck unless you can persuade the hardhearted investment company to back-off.

To do that I'd consult an attorney and get him or her to try to intercede on your behalf with a call or letter. This is a matter for negotiation. You might also write to your Congressman and ask for help.

This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com

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