Un-securing Personal Collateral SBA loan?

[Mik3]

If an SBA loan was used for a business that was established as a LLC, but was also signed with a personal guaranty of my collateral assents, is there a way to persevere those secured assets or remove the personal guaranty?

M

[despritfreya]

Not sure what you are asking. Please re-phrase the question.

[neverending]

Unless the bank is willing to release your personal guarantee I think you are stuck. I have a friend who did this. Her house was on the line but the bank released it because there was no equity in it anymore. Is it your house that is securing the loan or other assets?

[Mik3]

Unless the bank is willing to release your personal guarantee I think you are stuck. I have a friend who did this. Her house was on the line but the bank released it because there was no equity in it anymore. Is it your house that is securing the loan or other assets?

Yes, there is only equity if the SBA loan is gone. So I'm not ure if they would release the equity.

What I was thinking is that their might be some way to have the entity to assume the liability.
M

[despritfreya]

Ok so, from the above posts I gather your entity took out an SBA loan using the assets of the business as collateral. In addition, you personally guarantied the loan and used your home as additional collateral. Now you want to know if the SBA will release the lien it has against your home and just look to the entity and its assets for payment since you are discharging your liability.

The answer is "maybe" if you cut a deal with it for a "buy-out". I have negotiated such deals but it means you have to have some cash and you will need to get an appraisal of the property. Further, you will want your attorney to contact the SBA's attorney instead of the SBA for the purpose of opening a dialogue for settlement.