the feds are discussing expanding teh 7(a) loans for small business.
This is very dangerous, because throwing credit to drowning men is
attractive but as the owner, you are personally liable for this,
Not correct. A small business can be incorporated. By doing this, it limits the losses to the value of the business. It is actually a good idea for a small business to incorporate, and many do. It limits any losses, particularly when starting up a business. It also limits the amount of damages that may occur against the owner in a lawsuit (ie slip-and-fall)[/quote]
I have a 7(a) 1.3 Million dollar Line of credit through the SBA for my firm.
According to SBA records, I am the Largest operating line of credit
in our state and the single most profitable line of credit for the SBA district office. So, I consider myself an expert in this product and it’s application.
Now when I signed the master note, I was required to sign a personal guarantee, and my partners were required to also sign these.
I had a long discussion with our banker when we signed all that and
they assured me that the bank would use all legal efforts to collect from
me in the event this line went south.
