Guide to Federal Government Sales Small Business Administration

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Small Business Administration

What is sold

The U.S. Small Business Administration (SBA) and its participating lenders make loans and loan guaranties to small businesses and individuals who are victims of natural disasters. If a borrower defaults on the SBA loan or guaranty, SBA or a participating lender may sell the property securing the loan. The assets for sale may range from real estate--commercial property, single family homes, and vacant land--to personal property such as machinery, equipment, furniture, fixtures, and inventory that were used in a wide variety of business operations.

The Asset Sales Program is an initiative to sell SBA's "owned portfolio" of loans and other assets. These assets consist of Section 7(a) and 504 guaranteed loans purchased. Private lenders and development companies originate and service 7(a) and 504 small business loans with a government guarantee for all or a portion of the loan. Upon default by the borrower, SBA purchases the guaranteed portion. It is these guaranteed portions as well as the lenders' share that are being offered for sale. SBA also originates and services Section 7(b) disaster assistance home and business loans to victims of natural disasters. These will also be sold.

How items are sold

Public auction, sealed bid, sealed bidders auction, listing with brokers or dealers, and private negotiation.

Auctions are open to all investors meeting certain financial qualifications.

How sales are advertised

Sales advertisements depend on the size and type of assets being sold. Classified and display advertisements appear in local, regional, national and international newspapers, and trade and industry publications. Individual properties for sale are listed by state at SBA's website at www.sba.gov. The SBA Headquarters office in Washington, DC does not maintain a mailing list of upcoming sales or of potential buyers who wish to be notified. However, local auctioneers and some SBA district offices may maintain localized lists.

Sales information for bulk loan sales is available on SBA's website at www.sba.gov as well as through advertisements in the Wall Street Journal and other nationally recognized newspapers throughout the country. SBA and its financial advisors also maintain a mailing list of persons or firms who have indicated a desire to be informed of all sales.

Special restrictions/conditions

Unless otherwise specified, all sales are "as is". The buyer is responsible for removal. For the most part, only cash or guaranteed payment such as a cashier's check or certified check is accepted. The sales advertisements will provide payment information.The terms and conditions for each sale are provided before the start of the sale.

All prospective bidders should be present at this time, since bidders are bound by sales announcements and published information, and there may be some last minute changes or additions to the advertised terms. SBA has certain qualification standards for persons or entities interested in bidding on SBA loans. These can be found on the www.sba.gov/assets web page under the specific sale announcements.

For more information

For individual assets, consult SBA's website at www.sba.gov and select "Property for Sale." Then, select the state you are interested in. Select "Loan Asset Sales" for the asset sales program. You also may call your local SBA district office. To find the district office nearest you, call 1(800)U-ASK-SBA (1-800-827-5722) or look for the U.S. Small Business Administration under the "U.S. Government" listings in the telephone directories of the major cities in your state. Ask for the Liquidation Chief, and specify the types of assets you wish to buy, the general price range, and the geographic location in which you're interested. To find out how to be placed on a localized mailing list (if there is one), contact the SBA Liquidation Chief in the location where you wish to buy goods. To obtain additional information on loan sales please visit www.sba.gov/assets or write to:

U.S. Small Business Administration
Asset Sales Team
409 Third St. SW, Suite 8300
Washington, DC 20416

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