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 Kansas Assumption Agreement of SBA Loan refers to a legally binding contract that allows a new borrower, known as the "Assuming Borrower," to take over an existing Small Business Administration (SBA) loan in the state of Kansas. This agreement is commonly used when the original borrower, referred to as the "Original Borrower," wants to transfer their loan obligations to a new party. The Kansas Assumption Agreement of SBA Loan outlines the terms and conditions of the loan transfer, ensuring that all parties involved understand their responsibilities. It specifies the rights and duties of the Assuming Borrower, including repayment obligations, interest rates, and loan duration. Moreover, it addresses the rights and obligations of the Original Borrower, such as their release from the loan and any remaining liabilities. The Assumption Agreement safeguards the interests of the lender by requiring the Assuming Borrower to meet certain criteria set by the SBA. This includes a thorough review of the Assuming Borrower's financial standing, creditworthiness, and capacity to repay the loan. The agreement may also require the Assuming Borrower to provide collateral or a personal guarantee to further secure the loan. There are several types of Kansas Assumption Agreements of SBA Loan, based on the specific circumstances and parties involved: 1. Full Assumption Agreement: In this type of agreement, the Assuming Borrower assumes full responsibility for the SBA loan, including both the principal and interest payments. The Original Borrower is fully released from the loan and any future liabilities. 2. Partial Assumption Agreement: A Partial Assumption Agreement occurs when the Assuming Borrower takes over a portion of the SBA loan while the Original Borrower remains responsible for the remaining balance. This is typically seen when the Original Borrower wants to reduce their loan obligations but still maintain some financial responsibility. Each type of Assumption Agreement has its own set of terms and requirements, often tailored to the specific needs of the parties involved. It is essential for all parties to carefully review and understand the terms of the agreement before entering into this legally binding contract.
