The Short Answer

In Florida, you typically do not “assume” your parent’s SBA disaster loan in your personal capacity just because you are the estate’s administrator (personal representative). Instead, you generally address the loan as an estate obligation—communicating with the SBA, confirming whether the SBA is a secured creditor, and negotiating payoff, modification, or other resolution on behalf of the estate.

Florida law gives a personal representative authority to settle and resolve estate obligations, but the right approach depends on the loan documents, collateral, and creditor-claim deadlines.

What Florida Law Says

As the personal representative, you have fiduciary duties to settle the estate efficiently and in the best interests of interested persons (including creditors), and you generally administer the estate without needing a court order for routine administration. That includes dealing with debts and contracts the decedent had at death and, when appropriate, negotiating a resolution that protects the estate and beneficiaries.

The Statute

The primary law governing your authority to deal with an estate debt (including negotiating terms or resolving disputes) is Fla. Stat. § 733.612.

This statute authorizes a Florida personal representative—acting reasonably for the benefit of interested persons—to handle estate transactions, including performing or compromising the decedent’s contracts and satisfying and settling claims as part of administering the estate.

Separately, Florida’s probate code imposes strict claim-presentment deadlines for creditors, which can matter if the SBA must file a claim in the probate case (or if the estate needs to object to a claim). See Fla. Stat. § 733.702 and the outside two-year bar in Fla. Stat. § 733.710.

For background on how estate debts are handled, you may find these helpful: creditor claims in a Florida estate and a personal representative’s responsibilities in Florida probate.

Why You Should Speak with an Attorney

While the statutes give you authority to deal with debts, SBA disaster loans can involve federal rules, collateral documents (like UCC liens or mortgages), and repayment terms that create real risk for an estate administrator. Legal outcomes often depend on:

• Strict Deadlines: Creditor-claim timing can be outcome-determinative. Florida generally requires claims to be filed within the deadlines in § 733.702, and there is a hard two-year bar in § 733.710 (with limited exceptions). Missing a deadline can change leverage and options.
• Burden of Proof: Whether the SBA is secured (and what collateral it can reach) often turns on loan paperwork, recorded liens, and how assets are titled—issues that can require careful document review before you agree to any “assumption” or modification.
• Exceptions and Priority: Even when a debt is valid, payment priority matters. Florida sets an order of payment for estate obligations in Fla. Stat. § 733.707, and paying the wrong thing at the wrong time can create disputes with beneficiaries or other creditors.

Most importantly, you want to avoid accidentally taking on personal liability or making commitments that the estate cannot legally or practically meet. A Florida probate attorney can coordinate the probate creditor-claim process while communicating with the SBA to pursue the safest resolution for the estate.

Get Connected with a Florida Attorney

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.