Can lenders close on an SBA7(a) loan if there is a pending lawsuit?

searcher profile

April 04, 2024

by a searcher from St. John's University in New York, NY, USA

I am getting conflicting answers on this question.

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commentor profile
Reply by a lender
from St. John's University in Ponte Vedra Beach, FL 32082, USA
Yes, SBA allows this, and as stated previously it is dependent on the situation with the lawsuit. I am happy to have a one on one in depth conversation about the project you are referring to and see how we would be able to navigate, My cell is###-###-#### , email is redacted or you are welcome to schedule directly via my calendly: https://calendly.com/bturner-thebancorp/45min
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Yes they can. The SBA allows it. However, each individual lender has to get comfortable with what the risk is related to the lawsuit you or the business is under. Some lenders just avoid it whereas others will take a look and try to understand it and the future impact. Happy to get on a call to discuss your particular situation. You can reach me here or directly at redacted Good luck.
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