We Provide Nationwide Business Debt Relief
Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt.
Failing To Repay Business Debt Isn’t The End
Many business owners think failing to repay business debt means: your business is over.
This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business.
What Are Some Ways We Can Help With Business Debt Relief?
Our experienced business debt relief consultants are here to help you through this stressful time.
Alright, let’s dive into this together! The plan today is to help you clearly understand how to fill out your SBA personal financial statement. You ready? Okay, let’s go.
The Real Deal about SBA Loans
You know, there’s this tall tale floating out there that the SBA just hands out loans to entrepreneurs. That’s far from the truth. When you fill out an application for an SBA loan, it travels not to the SBA, but a bank or another lender approved by the SBA. Not so scary, huh?
The role that SBA plays is it ‘guarantees’ the loans sanctioned under its program. In effect, they act like your buddy vouching for you, promising to pay back a part of the debt if things go awry.
So, to make sure it doesn’t come to that, they need your SBA personal financial statement included in your application. This document is important because it convinces the loan officer that you’ve got the financial chops to handle your loan.
Who Should Submit an SBA Personal Statement?
Not every Joan and Joe in your company needs to submit a personal financial statement. If you’re asking for a 7(a)/504 or 8(a) loan, it hinges on the equity you have in your company.
For those getting 7(a)/504 loans, if you hold more than 20% equity, you’ve got to offer up an SBA personal financial statement. That’s a must, whether you’re the company owner, partner, managing member of an LLC or even a spouse or child with over 20% equity – even if you’re not a part of the daily grind.
In case of joint tax returns with your spouse, they need to submit a personal financial statement too. However, whether they end up as a guarantor will depend largely on your individual circumstances.
The standards are slightly different for the 8(a) loan, intended for those claiming an economic disadvantage. Here, if you hold over 10% equity in the business, you’re required to submit a financial statement.
What Documents You Need Handy
But before you get started, make sure you have all your ducks in a row. The list might seem a bit long, but preparation is key to getting it right. I’m talking everything from bank statements to life insurance statements, from pay stubs to liabilities like mortgage and credit card statements. And don’t forget those statements for current value of stocks, bonds, and other investments.
Remember, each one should show an account number, payment amount, and current balance. If you have quarterly statements, use the most recent one for the latest information.
The Assets Column
Now, let’s tackle the assets section. This is where you list all your different incomes. You’ve got a space for cash on hand/in banks, savings account, IRAs or other retirement accounts, real estate, your vehicle, life insurance, collectibles, and your ownership interest in your firm. The SBA is interested in knowing about any other assets you might have as well.
The Flip Side: Liabilities Column
Liabilities refer to your expenses and debt. Include things like your accounts payable, repayment amounts for personal loans – be they from people you know, financial institutions or your business, loans on life insurance, mortgages on real estate, unpaid taxes, and any other liabilities.
To calculate your total liabilities, simply add them all up. Then, to calculate your net worth, subtract “Total Liabilities” from your “Total Assets.”
Remember to be thorough and accurate when filling out your SBA personal financial statement. The SBA will use this to gauge whether they can put their money on the line for you. Borrowing more than you can comfortably afford is not a good road to go down. For more assistance, or advice on managing an SBA loan default, check out Lawscape website.
At Lawscape and Lawscape, we’ve helped our clients handle SBA Debt Issues successfully, without resulting in Bankruptcy or Home foreclosure. We are authorized by the Agency Practice Act to defend debts before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
I hope this makes the process of filling out your SBA personal financial statement a little bit clearer. We’ll get you through this, promise.
Lawscape Can Help You Manage Your Business Debt
If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive.
We Handle It All
Merchant Cash Advance
SBA Debt Relief
Secured Business Debt
Unsecured Business Debt
Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt.
Discuss your situation today
We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.