Can the SBA Sue More than 6 Years Later?

Question. Can the SBA Bring a Contract Action More than 6 Years After the Default? Answer. 28 U.S.C.§ 2415(a) establishes the federal statute of limitations applicable to SBA actions to recover under contract. Under this statue the SBA has 6-years to file suit to recover under the contract for non-payment under the Note. More specifically,… [Read More]

What if my Note is purchased by a third-party. How long do they have to sue me?

Question.What if my Note is purchased by a third-party. How long do they have to sue me? Answer: In Texas, the answer is settled, but in other states this answer may vary. In FDIC v. Bledsoe, 989 F.2d 805 (5th Cir.1993),the Fifth Circuit held that assignees of the federal government are entitled to the six-year… [Read More]

My state has a four-year statue of limitations on contract actions. How can the SBA sue after it has expired?

Question.My state has a four-years statue of limitations on contract actions. How can the SBA sue after it has expired? Answer. It is settled law that state limitations statutes are relevant in determining a claim’s viability at the time the federal agency acquires the claim.  If the state statute of limitations has expired before the… [Read More]