SBA backed loans

The government always makes sure they have their name on enough of your stuff that they can get all their money back when things go south.

Back about 12 years ago I was going through the process of getting an FSA loan for some land and cattle. FSA is on everything. They basically manage what you’re doing. You have to meet with the FSA officer a couple times a year and go over all your stuff. When you sell calves the check goes to them and then they give you an allowance to keep operating another year. If your balance sheet gets out of whack they can tell you to sell cows, or sell land, whatever they want and you pretty much have to do it.

We were near the end of the process when we found out they require 150% collateral. They wanted my pickup, her pickup, our stock trailer, and my truck all listed as collateral. If we went through with the loan if cattle would’ve been down or it was a bad year or whatever the FSA could’ve told us to sell a pickup. Or if my truck wasn’t profitable enough and looked bad on our balance sheet I could’ve been told to sell it.

I guess that’s a drawn out way to say under zero conditions would I ever have the government financing a business for me. I realize the SBA isn’t near as strict as the FSA but still. They’ll get their money and you’ll be on the street.