This form is an assumption agreement for a Small Business Administration (SBA) loan. Party assuming the loan agrees to continue payments thereon. SBA agrees to the assumption of the loan and release of original debtor. Adapt to fit your circumstances.
The Alaska Assumption Agreement for SBA Loan is a legally binding contract between a borrower and a third party who wishes to assume the obligations of the original borrower in regard to a Small Business Administration (SBA) loan. This agreement allows the original borrower to transfer their rights and responsibilities under the loan to another party, relieving them of any further obligations. The assumption agreement is typically initiated when the original borrower wishes to sell their business, but the buyer does not have the necessary funds to fully pay off the existing SBA loan. In such cases, the buyer can assume the loan by entering into an assumption agreement with the lender. This agreement outlines various terms and conditions, including the transfer of the outstanding loan balance, interest rate, repayment terms, and any associated fees or costs. It also requires the buyer to meet certain eligibility criteria and undergo a creditworthiness evaluation to ensure the lender's approval. There are two main types of Alaska Assumption Agreement of SBA Loan: 1. Full Assumption: In this type of agreement, the buyer assumes all obligations of the original borrower and becomes solely responsible for repaying the loan. The original borrower is completely released from any further obligations and liabilities to the lender. 2. Partial Assumption: In some cases, the original borrower may choose to transfer only a portion of their loan obligations to the buyer. This could involve transferring a specific portion of the outstanding balance or restructuring the loan terms to divide the repayment responsibility between the original borrower and the buyer. It is important to note that the specific terms and conditions of the Alaska Assumption Agreement of SBA Loan may vary depending on the lender and the individual circumstances of the loan. Therefore, borrowers and potential buyers should carefully review the agreement, seek legal counsel, and negotiate any necessary modifications to ensure all parties are protected and understand their responsibilities.
