Archive for the ‘SBA’ Category

SBA State Tax Liens: Do they hinder approvals?

On most SBA applications there is a question asking applicants to state if they are delinquent on child support or federal and state taxes. If their reply is ‘YES’ the application may not be eligible for processing under certain SBA lenders policies and procedures.

Businesses may want to consider clearing up tax liens if you are more than 60 days delinquent on any obligation to pay taxes or child support arising under an administrative order, court order repayment agreement between the holder and a custodial parent, or repayment agreement between the holder and a state agency providing child support enforcement services.

Again, approvals or processing the loan request is always going to be subject to each bank’s Standard Operating Procedures. Additionally, businesses should know that these liens does not always show up on the credit report, it just depends on how far behind you are on paying, therefore being honest is best!

I hope this helps!

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