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 Montana Assumption Agreement of SBA Loan is a legally binding document that allows a borrower to transfer their Small Business Administration (SBA) loan to another individual or entity. This agreement is crucial in situations when a borrower wishes to sell their business or transfer ownership but wants to avoid paying off the existing SBA loan in full. The Assumption Agreement outlines the terms and conditions under which the loan can be assumed by the new borrower (also known as the assumed). It typically involves the negotiation and approval of the lender, the assumed's financial qualifications, and the terms of the original loan, among other factors. There can be different types or variations of the Montana Assumption Agreement of SBA Loan, depending on the specific circumstances and requirements. These variations may include: 1. Full Assumption Agreement: In this type of assumption, the new borrower (assumed) takes over the complete responsibility of the loan, including the remaining principal amount, interest rate, repayment schedule, and any other terms previously agreed upon. 2. Partial Assumption Agreement: This type of assumption involves the new borrower assuming only a portion of the loan. The original borrower remains liable for the remaining portion and continues to make payments on it. 3. Contingent Assumption Agreement: Sometimes, an assumption agreement may be contingent on certain conditions being met. For example, the agreement may state that the assumed will only take over the loan if a specific event occurs, such as the approval of a related business permit or license. 4. Assumption with Release Agreement: In some cases, the original borrower may seek to be released from liability on the loan after the assumption takes place. This type of agreement relieves the initial borrower from any further obligation or responsibility towards the loan. It is important to note that the terms and conditions of the Montana Assumption Agreement of SBA Loan may vary from one agreement to another. It is crucial for all involved parties to carefully review and understand the agreement terms before signing to ensure compliance and avoid any potential legal complications. Consulting with legal professionals or experts in SBA loans is strongly recommended navigating the complexities of these agreements.
