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 Wisconsin Assumption Agreement of SBA Loan is a legal document that outlines the terms and conditions under which a new borrower assumes the responsibility of an existing Small Business Administration (SBA) loan in the state of Wisconsin. The agreement typically involves the transfer of ownership or control of a business that has an outstanding SBA loan. This agreement is important as it protects the interests of all parties involved in the loan transaction, including the SBA, the original borrower, and the new borrower. It ensures that the new borrower understands and accepts the obligations and responsibilities associated with the SBA loan. The assumption agreement stipulates the terms for the assumption process, including the repayment terms, interest rates, loan balance, and any additional fees or charges. It also sets out the rights and obligations of the new borrower, including requirements for financial reporting and compliance with SBA regulations. There can be different types of Wisconsin Assumption Agreement of SBA Loan, depending on the specific circumstances of the loan assumption. Some common types include: 1. Full Assumption Agreement: This type of agreement occurs when a new borrower fully assumes the entire SBA loan, including the remaining loan balance, interest, and other associated costs. 2. Partial Assumption Agreement: In this case, the new borrower assumes only a portion of the original loan. This could involve assuming a specific debt amount or particular repayment terms. 3. Assumption with Release Agreement: This agreement allows for the release of the original borrower from certain liability associated with the loan upon assumption by the new borrower. The new borrower takes over the loan while the original borrower is relieved of some or all financial obligations. It is important for all parties involved to carefully review and understand the Wisconsin Assumption Agreement of SBA Loan before signing it to ensure compliance with local laws and regulations. Seeking legal advice or consulting with an experienced attorney specializing in SBA loans is highly recommended ensuring a smooth and legally sound assumption process.
