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 Massachusetts Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions of assuming an existing Small Business Administration (SBA) loan in the state of Massachusetts. This agreement is typically entered into when a borrower wishes to transfer the responsibility of repaying the loan to a new individual or entity, referred to as the assumption. The assumption agreement ensures that both the original borrower and the assumption understand their respective rights and obligations in relation to the SBA loan. It outlines the specific terms and conditions of the loan, including the outstanding balance, interest rate, repayment schedule, and any other terms agreed upon between the original borrower and the SBA. The assumption agreement also details the duties and obligations of the assumption. This may include the requirement to continue making timely loan payments, maintaining the property or collateral used to secure the loan, and notifying the SBA in the event of any changes in ownership or business structure. In the state of Massachusetts, there may be different types of assumption agreements for SBA loans, depending on the specific circumstances and purpose of the loan. These variations may include: 1. Full Assumption Agreement: This type of assumption agreement occurs when the assumption agrees to assume the entire loan amount along with all associated responsibilities and liabilities. 2. Partial Assumption Agreement: In some cases, the original borrower and the assumption may agree to a partial assumption, where the assumption only assumes a portion of the outstanding loan balance. This can be beneficial when the original borrower wants to reduce their financial burden while still retaining some responsibility for loan repayment. 3. Assumption and Release Agreement: This type of assumption agreement is typically used when the original borrower wishes to transfer the responsibility of loan repayment to the assumption and completely release themselves from any further liabilities associated with the loan. It is important for all parties involved to thoroughly review and understand the terms and conditions outlined in the Massachusetts Assumption Agreement of SBA Loan before signing. Seeking legal advice or consulting with an SBA-approved lender can provide further guidance and ensure compliance with state and federal laws.The Massachusetts Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions of assuming an existing Small Business Administration (SBA) loan in the state of Massachusetts. This agreement is typically entered into when a borrower wishes to transfer the responsibility of repaying the loan to a new individual or entity, referred to as the assumption. The assumption agreement ensures that both the original borrower and the assumption understand their respective rights and obligations in relation to the SBA loan. It outlines the specific terms and conditions of the loan, including the outstanding balance, interest rate, repayment schedule, and any other terms agreed upon between the original borrower and the SBA. The assumption agreement also details the duties and obligations of the assumption. This may include the requirement to continue making timely loan payments, maintaining the property or collateral used to secure the loan, and notifying the SBA in the event of any changes in ownership or business structure. In the state of Massachusetts, there may be different types of assumption agreements for SBA loans, depending on the specific circumstances and purpose of the loan. These variations may include: 1. Full Assumption Agreement: This type of assumption agreement occurs when the assumption agrees to assume the entire loan amount along with all associated responsibilities and liabilities. 2. Partial Assumption Agreement: In some cases, the original borrower and the assumption may agree to a partial assumption, where the assumption only assumes a portion of the outstanding loan balance. This can be beneficial when the original borrower wants to reduce their financial burden while still retaining some responsibility for loan repayment. 3. Assumption and Release Agreement: This type of assumption agreement is typically used when the original borrower wishes to transfer the responsibility of loan repayment to the assumption and completely release themselves from any further liabilities associated with the loan. It is important for all parties involved to thoroughly review and understand the terms and conditions outlined in the Massachusetts Assumption Agreement of SBA Loan before signing. Seeking legal advice or consulting with an SBA-approved lender can provide further guidance and ensure compliance with state and federal laws.
