Time to renew my line of credit. Bank says they want to have SBA in this time. Owe some personal income tax fromm 2007. Was not able to pay in 2008 due to slow business. Don't have payment plan yet from IRS. Will this situation kill a deal with the SBA?
Being behind on taxes will likely get your loan declined by the bank and the SBA both. Also, why are they wanting to bring SBA in now on the line of credit? That is probably not a good sign...
It is my understanding that if you can prove an arranged payment plan you are still eligible for a SBA loan.
Contact the SBA's Lender's Relations Specialist in your area for a definite answer.
http://sba.gov/localresources/index.html
Hope that helps.
Message Edited by TR_OK on 04-03-2009 08:47 AM
It is my understanding that if you can prove an arranged payment plan you are still eligible for a SBA loan. Contact the SBA's Lender's Relations Specialist in your area for a definite answer.http://sba.gov/localresources/index.html Hope that helps.Message Edited by TR_OK on 04-03-2009 08:47 AM
Yes, if you are behind on your taxes - they will decline your loan. Remember, they are looking for any and every reason to say 'no'
Having a payment plan in place may help - but in this market - I don't think they will take the time to research your plan/agreement.
I would suggest finding a way to bring your taxes current - whatever way that you can that does not also lower your qualifications for the LOC.
chatton | Window Shopper | 4/7/2009 - 9:54 pm
TR_OK | Contributor | 4/2/2009 - 11:35 pm
phanio | Contributor | 4/3/2009 - 3:47 pm
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