What happens when an SBA-backed business goes bankrupt?
It's rare, but what happens to an SBA-financed business when a buyer declares bankruptcy? The underwriting bank will seize the business and exercise their claim over the buyer's personal assets, sure, but how / where does the bank re-sell the business, likely for pennies on the dollar? Seems like there's opportunity to scoop up distressed assets on the low, polish a bit, and then flip or hold. Curious if anyone has experience in this area.
