I was forced to close my business due to insufficient of funds coming in.
After about a year I had depleted most all my funds and couldn’t pay my
bills and decided that I could not afford to stay open anymore.
I tried to work out of my home but still no luck.
My plans didn’t work out as I panned them due to copyrights.
I worked for a year for a manufacturing company through a employment agency
and was layed off after they had hired an employee much younger than me.
After struggling for a few months with health issues and looking for work, I
decided to file for social security benefits.
As we all know it is never enough. At this time I have an SBA loan with
Borrego Spring Bank
In La Mesa Ca. With an 8% interest rate and a balance $5000.00
Please if anyone is reading this, tell me what I need to do.
Thanks

the key is really the personal guarantee. If you don't need to supply one of these then your personal assets are safe due to your limited liability status. realisticaly though your lender will probably insist on this unless you have a lot of assets you can use as security against the loan.

Read more about defaulting on a loan - including immediate repercussions and future implications for both you and your business - in this article from Business.gov: What Happens When I Default on a Business Loan?

redmantle, You can take a look at other discussion boards about similar topics SBA Settlement is that possible I own a corporation that has went under I have a SBA loan -JimD

Chances are very high that no matter how you take the loan out you will be signing a personal guaranty which puts everything you own at risk and as additional collateral to the loan.Because you probably own 100% of the LLC and must also deal with your personal guaranties which may also go into default with the business, your personal credit is at jeopardy and will be effected.