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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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What is, or is there, a statue of limitations on sba

Customer Question

what is, or is there, a statue of limitations on sba business loans?
Submitted: 1 year ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 1 year ago.

Thank you for your question. Please permit me to assist you with your concerns.

My apologies, what exactly do you mean--are you asking what the SOL would be on debt collection? Please advise!

Customer: replied 1 year ago.
i got an sba loan through my bank in 1994. I closed the business and the proceeds of the sale went to pay off the loan. The loan was closed in 2004. I never heard from the SBA until just this year. I checked with the bank and they told me to forget about it.
Expert:  Dimitry K., Esq. replied 1 year ago.

Hi,

In what state are you located in? Was this a private loan or a loan under the business?

Customer: replied 1 year ago.
State of Missouri; this was a business loan.
Expert:  Dimitry K., Esq. replied 1 year ago.

Thank you for your patience.

In Missouri the statute of limitations on debt collection is 5 years from date of late activity. And as that occurred more than 10 years ago, you are now time barred from a collection suit as far as this debt is concerned.

Sincerely,

Dimitry, Esq.

Customer: replied 1 year ago.
is this statute of limitations also available good for government loans?
Expert:  Dimitry K., Esq. replied 1 year ago.

Hi,

A governmental loan is different. And unfortunately as of 2013, there is language stating that any federal debt owed can be pursued, even decades later. So while a private debt has a 5 year statute in Missouri, federal debt is able to be pursued.

Sincerely,

Dimitry, Esq.