Personal Bankruptcy need help sba loan and bank

Not open for further replies.


New Member
I obtained my sba loan for 145000 in Oct. I have used 38000 of that money. My equipment dollars came in less and my buildout was more than expected. I notified the bank and now they want $30000.00 for collateral. I don't have it. I will have to file bankruptcy because I am totally broke. I have liquidated the equipment I bought but I due to restocking fees and shipping I could not get the full amount. I signed a personal guarantee - my house which has about 20,000 in equity. I would like your opinion on the odds that they will take my house?

Thank you,
The SBA can be patient, but you will either pay them or they will foreclose on the mortgage.

I don't get how you only used $38,000 of the loan funds, have sold the $30,000 in equipment, and still owe the SBA. Did you sell the equipment and pocket the dough? If so, thats not very nice, and I would expect fairly aggressive tactics from the SBA.

Please explain.
no I didn't pocket the money - the other part was working capital - advertising, my security deposit on the lease etc. all items I cannot recover. I didn't spend 30,000 in equipment that was the problem - I only spent 18,000 the rest is wc. I cannot recove all of the 18,000.
Well, I'd pay them back what you can, and make a payment plan for the rest. You can't expect them to take the loss and walk away.

I don't entirely understand the reasons for the business failure over 60 days, but the bottom line is that you owe the money and ultimately they will collect it.
Not open for further replies.