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 Illinois Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions under which a borrower can transfer their Small Business Administration (SBA) loan to another party. This agreement allows for the assumption of the loan, meaning that the new party agrees to assume responsibility for the outstanding debt and future repayments. The Illinois Assumption Agreement of SBA Loan typically includes important details such as the names and contact information of the borrower, the original lender, and the new party assuming the loan. It also specifies the original loan amount, the remaining balance, and the repayment terms, including any interest rates and fees. Other key provisions may include the loan maturity date, any prepayment penalties, and the consequences of default or non-payment. It is important to note that there may be different types of Illinois Assumption Agreements of SBA Loan depending on the specific circumstances. Some common types include: 1. Full Assumption: This type of agreement occurs when the new party fully assumes both the legal and financial responsibility for the SBA loan. The original borrower is released from any further obligations and liabilities related to the loan. 2. Partial Assumption: In this case, the new party assumes only a portion of the loan. The original borrower remains liable for the remaining balance and continues making payments on the remaining portion of the loan. 3. Assumption with Release: This type of assumption agreement may occur when the borrower sells their business to a new owner. The new owner assumes both the ownership of the business and the liability for the SBA loan. The original borrower is released from any further obligations. It is crucial for all parties involved in an Illinois Assumption Agreement of SBA Loan to carefully review and understand the terms and conditions before signing the document. Seeking legal advice from an attorney experienced in SBA loans can help ensure that all parties' rights and responsibilities are protected.
