10/24/2023
2020 The government re-introduced the SBA loans. Everybody jumped and got one rather they had a business or not! Mind you these are loans not grants like the forgivable PPP. Meaning the SBA loans were meant to be paid back. Now let’s talk about what happens when these ”small business” loans are not paid back. Because these are government loans they are entered into your CAIVRS report! The Credit Alert System (CAIVRS) is a shared database of defaulted federal debtors.This report is typically ran by most lenders as part of the home loan qualification process.
(Edit) what else shows up in CAIVRS? Rural homeowners with delinquencies over 90 days past due, defaults or insurance claims due to foreclosure on federally guaranteed USDA loans are reported to CAIVRS. Federal student loans. Delinquent or defaulted student loans and claims paid for federally backed education loans will show up in a CAIVRS report. If you appear in CAIVRS as delinquent on a government debt, the lender probably won’t approve you for the new loan.
