Will my tax debt affect my chances of getting a business loan?
Will your tax debt hurt your chances of getting an SBA loan? The answer to that is: maybe. The Small Business Administration does not lend money directly. All lending is done through a bank or other financial institution through the SBA program. Thus all lending requirements are determined by the individual lender.
Generally, the loan officer will review your credit report to determine your eligibility for a loan. The big question is: Has your tax debt shown up on your credit report? If you have a lien filed against you, it will stay on your credit report for seven years. The only way to know if your credit has been negatively impacted is to keep a close eye on your credit report.
My recommendation is to get this tax debt resolved as soon as possible. You may be eligible for a Streamlined Installment Agreement, which is faster and easier to establish and often results in much smaller monthly payments.
Once you are on the road to resolution, you can show an SBA lender that while this debt occurred, you are taking the steps necessary to satisfy the debt.
Roni Deutch is known as "The Tax Lady" for a reason: She has two decades of practical experience resolving IRS tax problems and preparing taxes for taxpayers nationwide. Consequently, she has become a well-known media personality and one of the few go-to tax experts in the country. She is the founder and owner of the nation's largest tax resolution law firm, Roni Deutch, A Professional Tax Corp.