The Difference Between a Default and a Delinquent on an SBA Loan

No one really wants to fall behind on their business loans. After all, you made a promise to pay back the money after they were willing to lend it to you. Protect Law Group is a California-based SBA loan default attorney who helps small businesses which are having trouble paying back their SBA loan. Learn the difference between a default and a delinquent when it comes to an SBA loan, and call today for a free consultation!

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What Does Being Delinquent on an SBA Loan Mean?

Delinquent is the lender term given to those who are behind on their SBA loan payments. The small business can be behind by merely one day or months — the name doesn't change. However, being delinquent on your SBA loan means that the lender still believes you will pay the loan back.

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What Does it Mean to Be in Default on an SBA Loan?

When your SBA loan enters the default status, this is when the small business fails to meet the terms in the promissory note agreement or they are shirking other responsibilities of the loan's terms. Ultimately, an SBA default status means that the lender believes you are unable to repay your small business loan back.

How to Deal with an SBA Loan that is Delinquent

If you are merely delinquent on your SBA loan, you can work with your lender to get back on track. Some options include making smaller payments, restructuring the SBA loan for you, and waiving late fees.

How to Deal with an SBA Loan in Default

For the most part, the federal government wants their money back if your SBA loan enters default status. It's at this point that you should reach out to a top-rated SBA attorney in order to help you resolve the matter favorably with your lender.

CONTACT PROTECT LAW GROUP TODAY

Protect Law Group has years of experience in helping those whose SBA loan is in default in the state of California. Reach out to one of our SBA default attorneys for a free consultation today!

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