I am in a 50/50 partnership looking at possibly securing a SBA start up loan for my half of the startup costs. As the wife of a veteran I think I qualify for a couple different options. My question is: will my partner be evaluated for the loan I apply for as well? Like I said It would be for only my share of the startup costs but because she owns 50% of the company will her credit need to be evaluated as well or can I exclude her completely from the process?
Yes you will both need referencing. I would be cautious about having any
financial commitment with family members.
I was always taught this and made a few mistakes along the way..
Relationships do break down, and when there's property and a business
involved it can be a right mess, so just look out for yourself and make sure
you have your back covered.
It would have to be a personal loan. If the loan is to the business entity,
most lenders and the SBA will require the guarantee of the other partner.-
This means that you might want to take a look at either unsecured loans, home
equity loans, or something similar.
If you are a legal partnership, registered with your state as such, then both of you will be evaluated for the loan. The only way to possibly prevent that is if one of you is the general partner, probably you, and your husband is a limited partner. You would need to be registered as such and it may not be in your best interests. In a limited partnership, you would have the burden of running the business and bear the majority of the responsibility for financing. Your husband would be responsible only for his personal investment in the business. Your attorney can discuss options with you.
Just to touch base on the "personal guarantee" as previously posted. What that means is, whoever pledges on behalf of the SBA loan is personally guaranteed to make sure that money gets paid back. If the loan ends up in default or foreclosure everybody is liable. They can put liens on the guarantors homes, attach wages, and withdraw bank accounts. Be careful when forming partnerships or co-signing on loans.
I need to find a way to secure my portion of the startup funds without my partners credit being evaluated with mine. Is there any programs out there that would fund a loan based on my credit only?
PDLoans | Window Shopper | 7/15/2012 - 3:38 pm
financial commitment with family members.
I was always taught this and made a few mistakes along the way..
Relationships do break down, and when there's property and a business
involved it can be a right mess, so just look out for yourself and make sure
you have your back covered.
loanuniverse | Window Shopper | 4/5/2012 - 9:11 pm
most lenders and the SBA will require the guarantee of the other partner.-
This means that you might want to take a look at either unsecured loans, home
equity loans, or something similar.
BizResearcher | Window Shopper | 3/14/2012 - 12:17 pm
RyanBridgeMgt | Window Shopper | 3/2/2012 - 1:27 pm
andreag | Window Shopper | 3/1/2012 - 9:54 pm
Businessloanfunds | Window Shopper | 3/1/2012 - 3:14 pm
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