Eastern Illinois Trust & Savings Bank v. Sanders

CUDAHY, Circuit Judge.. Eastern Illinois Trust & Savings Bank (“Eastern”) sued the Small Business Administration (the “SBA”) for damages based on the SBA’s refusal to abide by its agreement to purchase from Eastern 90% of three SBA-guaranteed loans that had lapsed into default. The SBA responded that Eastern had violated their agreement, thus releasing the SBA from its guaranty obligations; the SBA also counterclaimed for the amount it had paid to purchase one defaulted loan. After a bench trial the district court concluded that Eastern’s actions did not materially breach the guaranty…