Solutions for Missed SBA Payments

As a small business owner, you have many responsibilities to manage at once, which can sometimes lead you to miss some of your financial obligations. You're not alone – there are many borrowers out there with SBA loan payments who have had difficulty because of temporary issues, but by taking action quickly, you can avoid ongoing problems.

SBA loans (7(a), 504, microloans, and disaster loans) provide businesses with funding at flexible terms and in an easier way to access capital to enable business growth, but if the borrower does not make a loan payment on time, they will incur late fees and interest as well as receive contact from the lender regarding the late payment. A borrower can have a late fee of 5% or $100, whichever is greater.

If your payments remain overdue, not only will there be a negative impact on your cash flow and the lender's patience, but you could also affect your credit score and your ability to borrow in the future as a personal guarantor for any loans. The good news is that there are many options available, and borrowers should discuss with their lenders alternatives for making their payments, such as alternative repayment plans, deferments (especially on EIDL loans), debt consolidation, or revising how they make their loan payments through a CAFC.

To help you stabilize your business moving forward, it is important to take preventive measures, including automating your payments, regularly reviewing your cash flow, maintaining an accurate budget, and seeking advice from someone you trust. According to the document, If borrowers handle their SBA loan repayment problems quickly and openly, they can be resolved down the line.

Don't wait until problems arise to take action – Establish a strong financial position TODAY!