Insights into the world of small business lending and development
What to Do If You Can’t Pay Back Your SBA Loan
You took out a U.S. Small Business Administration loan to grow your business and had every intention of repaying it. But you've experienced some hardships and sales are weak. You can't make payments and are now facing an SBA loan default, which would likely spell doom for your business. This situation isn't uncommon: 1 out of 6 SBA 7(a) loans issued from 2006 through 2015 weren't paid back, with the average failing loan taking close to five years to reach the default status, according to a recent NerdWallet study.