The reason I ask about marriage is because it's important to get the spouse's input on a huge financial decision like indebting oneself to a huge secured loan, whether from the government, a bank, or Uncle Vinnie.
A loan that could potentially put them at risk in the event something negative were to happen to you, like death, sickness, etc.
I mean these loans are meant to provide working capital for business. Capital that is lacking due to a shortfall in revenue.
The loan goes on the negative side of the ledger, there's no intrinsic appreciable value to them. It's debt.
We all know what a horrible master the lender can be in the long run sometimes.
I would urge caution in the final analysis. In the end, each one of us has to make and live with our own choices, good or bad.
$10,000 EIDL GRANT
Discussion in 'Ask An Owner Operator' started by Scooter Jones, Apr 3, 2020.
Page 131 of 133
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So let's say (hypothetically) a person signs for and receives a 100k dollar EIDL. They subsequently wash that money through the business books over the next 2 year period, justifying in their mind it's for legitimate line items specified in the terms of the SBA contract.
Since the first payment is deferred until the beginning of the second year, an individual will have only paid 1 year of principal & interest by the end of the second year on a 30 year note. When suddenly the borrower dies.
In his/her estate, is 200k dollars of "personal" assets, but only a beat up truck and trailer and a hand full of tools in his/her "business" assets, worth very little in reality.
Do you really think the SBA, an arm of the Federal Government, is going to walk away from an almost 100k owed obligation?
If they file a claim against the estate or in probate, they will get their money, one way or the other. Or at least wreak havoc on the spouse, creating undue stress, hardship, attorneys fees, etc, on an already traumatic life/death situation.
As has already been attested, it's difficult to obtain a concise answer from the SBA phone center, with assurances, about the nuances and precise underlying legalities and rights being ceded to them contractually.
It's that uncertainty which led me to give the 85k dollars back...
Everyone else's mileage will vary. May the force be with you
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