I'm looking to acquire a business with lots of potential and assume the debt already on the books for the business. The debt is an SBA Loan. The current owner is burnt out & doesn't see the business surviving unless there are some drastic improvements made. Myself and my management team know exactly how to turn this business around.

The problem: The SBA Loan

Would we need to reapply for the loan to be maintained "as is" once the transfer of interest occurs?
Would we need to assume the Personal Guarantee on the SBA Loan?

If so, both of these are deal breakers for us

The seller's attorney has indicated that the SBA will need to be notified but I'm not sure if this also means that we'll need to apply as the new owners & sign a PG.

If so, Is there anyway to work around this?

Thanks for the help