What are the consequences if someone defaults on an SBA loan?

If somehow anyone defaults on the SBA loan, then they will be assisted by the lender and would come up on a solution. If still the problem prevails, the assets that were used as collateral would then be asked to give away as a payback of the loan. If then also the borrower isn’t able to pay back the loan amount, then the SBA will pay that particular amount to the lender on your behalf. And then the SBA will claim its money from the borrower. Then the SBA would set a compromise amount which will have afresh amount to be paid and also a new time period will be given to payback that amount.

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