To Compromise or Not to Compromise (on principal)
Principal compromise is a viable option when an SBA 7(a) loan runs into trouble, and the only other option is SBA loan liquidation.
It’s helpful for the business owner, because it allows them to keep on keeping on.
But there are some significant risks and potential “gotchas” for the Lender, especially when navigating SBA SOP 50 57 guidance. Let’s take a look.
Rebecca Mendoza
Jun 5