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 New Mexico Assumption Agreement of SBA Loan refers to a legally binding document that outlines the terms and conditions under which an individual or entity assumes the responsibility for an existing Small Business Administration (SBA) loan in the state of New Mexico, United States. This agreement is typically required when there is a change in ownership or the transfer of a business that has an outstanding SBA loan. The New Mexico Assumption Agreement of SBA Loan includes various key elements and provisions that are essential for a smooth transfer of the loan obligation. These may include: 1. Parties Involved: The agreement identifies the parties involved in the transaction, namely the current borrower (seller), the new borrower (buyer), and the lender (the SBA-approved financial institution providing the loan). It is crucial to accurately specify the legal names and contact information of all parties. 2. Loan Details: The agreement provides a comprehensive description of the loan being assumed, including the loan amount, interest rate, repayment terms, maturity date, and any specific conditions or restrictions relevant to the loan. 3. Assumption Terms: The agreement outlines the terms and conditions under which the new borrower assumes the loan responsibilities. This includes explicit acknowledgement by the new borrower of their obligation to repay the loan and comply with all loan terms and requirements. 4. Seller's Representations and Warranties: The seller makes various representations and warranties regarding the loan, ensuring that all information provided is accurate and complete. This may include statements related to the absence of default or litigation, compliance with applicable regulations, and accurate financial records. 5. Release and Indemnification: The agreement includes provisions for the release of the seller from all liabilities and obligations associated with the loan upon the assumption. Simultaneously, it establishes the buyer's obligation to indemnify and hold harmless the seller from any claims, damages, or costs arising from the loan. 6. SBA Approval: The agreement may stipulate that the assumption is subject to the approval of the SBA. This requirement ensures compliance with SBA regulations and procedures and protects the interests of all parties involved. Different types of New Mexico Assumption Agreements of SBA Loans may be categorized based on the specific nature of the transaction or the type of SBA loan being assumed. Some common types include Real Estate Assumption Agreement (for loans secured by real estate), Equipment Assumption Agreement (for loans secured by equipment), and General Assumption Agreement (for loans not specifically tied to real estate or equipment). It is important to note that the exact content and requirements of the New Mexico Assumption Agreement of SBA Loan may vary depending on the specific circumstances, the lender's policies, and any additional state or federal regulations applicable to the loan assumption process. Therefore, it is advisable to consult with legal professionals familiar with SBA loan transactions to ensure compliance and protection of all parties involved.
