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 Georgia Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions for transferring the responsibility of an existing Small Business Administration (SBA) loan to a new borrower or entity. This agreement is specific to the state of Georgia and ensures compliance with state laws and regulations. The purpose of the Georgia Assumption Agreement of SBA Loan is to allow a party, typically a buyer or a new business owner, to step into the shoes of the original borrower and assume all rights and obligations associated with the SBA loan. By assuming the loan, the new borrower agrees to repay the outstanding balance and adhere to the original loan terms, including interest rates, repayment schedule, and any collateral or security provided. Some key elements covered in the Georgia Assumption Agreement of SBA Loan include: 1. Loan Assumption Terms: This section identifies the parties involved in the agreement, namely the original borrower, the new borrower or entity assuming the loan, and the SBA lender. It also includes the effective date of the assumption. 2. Loan Details: The agreement provides a comprehensive description of the SBA loan being assumed, including the loan amount, loan number, and the original loan agreement's execution date. 3. Obligations of Assumed Loan: This section outlines the borrower's responsibilities regarding the prompt repayment of the loan, compliance with IRS reporting requirements, maintaining the loan's collateral, and any necessary insurance coverage. 4. Terms and Conditions: The agreement specifies that the new borrower agrees to the terms and conditions of the original loan, including interest rates, repayment schedule, and any prepayment penalties or fees. 5. Release of Original Borrower: The assumption agreement releases the original borrower from all liabilities and obligations associated with the SBA loan once the assumption is executed, transferring them to the new borrower. 6. Indemnification: This section establishes that the new borrower agrees to indemnify and hold harmless the original borrower, the SBA lender, and any other parties involved from any claims, liabilities, or losses arising from the loan assumption. 7. Governing Law: The Georgia Assumption Agreement of SBA Loan is subject to and governed by the laws of the state of Georgia, ensuring compliance with any state-specific regulations. While there may not be different types of Georgia Assumption Agreement of SBA Loan, there can be variations in the specific terms and conditions based on factors such as the type of SBA loan being assumed (e.g., 7(a), 504) or the financial institution involved. It is crucial to carefully review the agreement and consult legal counsel to ensure full understanding and compliance with all contractual obligations.
