SBA Loan Scenario – Credit Card Issue (Borrower as Co-Signor Owes Debt)

Who:

1.            Borrower wants to refinance his business debt
2.            Borrower went through a divorce to a trial
3.            Borrower and Ex-Spouse were ordered to split the credit card debt                and were responsible for paying off their portion of the debt
4.            Borrower’s Ex-Spouse did not pay off the court ordered debt
5.            This debt is found on the Borrower’s Credit Report as a charge off
What:

1.            Borrower cannot obtain an SBA Loan until this credit issue is dealt with.
2.            Bills to be paid off total $25,000

Where: Milwaukee, WI

When:   As soon as this issue is resolved, the loan can close

How:    

1.            Borrower went through all his options including friends, relatives,                reviewing personal and business assets
2.            Borrower could not find the means to pay off the subject debt

Decision:  Not Eligible for SBA Loan

Why:

1.            Recent charge off which could go to judgment. 
2.            FICO Score was not the issue
Eligibility Cure:

1.            The Lender of choice was apprised of the situation and cured the issue                by including the $25,000 as working capital

2.            The Borrower was allowed to use the working capital to pay off the charged off                debt at the closing. 

Call or email Joel Soforenko and go over your Loan Scenario
888-268-7778 x 2 or joel@southendcapital.com