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Post-Default Environmental Risk Management for SBA Lenders

Jimerson Firm

If a borrower defaults on a SBA loan, the lender or CDC must assess the environmental risk of contamination before conducting any liquidation action that could result in a loss, or otherwise increase the risk of loss, due to the actual or alleged presence of contamination. What Are Environmental Risks? SOP 50 10 5(E), Appendix 2.

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How to Apply for a Loan in 7 Steps

Credit Corp

Lenders use it to assess how likely you are to pay them back. If you have a low score, the lender might consider you high-risk, charge you higher interest rates, or even deny the loan. A secured loan requires collateral (like a car or house) as a guarantee, while an unsecured loan does not but typically has higher interest rates.

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Considerations When Closing a Small Business with PPP or EIDL Debt

Jimerson Firm

We do know, however, that PPP loan and EIDL default will have some impact and that the impact will be primarily related to the size of the outstanding government loan(s). When a business defaults on a loan with the federal government, the governmentlender” may report the business to credit scoring companies.

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How Often Can You Safely Refinance Your Home Mortgage?

Credit Corp

PMI protects lenders in case you can’t make payments on your home loan. If your down payment is less than 20% of the home loan, you won’t take a financial architect to tell you that the lender owns more of your home. Indeed, the lender might have more to lose if your deal goes south. The Importance of Equity and Your Refinance.

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Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges: Part 6 – Considerations for the Appointment of a Receiver During Commercial Foreclosures

Jimerson Firm

As discussed in parts 1-4 of this series, lenders have several options prior to instituting a commercial foreclosure action. Additionally, as briefly discussed in part 5 of this series, during the foreclosure action, lenders have options to try to preserve the value of the underlying collateral and to minimize further losses.

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Intercompany Loan: What Happens If The Borrowing Company Becomes Insolvent?

Hudson Weir

Intercompany loans can have varied terms – including the amount borrowed, repayment schedule, collateral requirements, and so on. In summary, when two businesses are involved in an intercompany loan, the lender risks not receiving repayment if the lendee becomes insolvent and ultimately enters liquidation.

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Dealing With Debt From COVID-19

Debt Free Colorado

Many creditors such as mortgage servicers, auto lenders, and credit card companies are offering assistance to individuals financially affected by the pandemic. Unlike mortgage lenders, most landlords are simply not in a financial position to weather the loss of rental income due to the high expenses associated with the rental property itself.