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Co-Ownership and Loans

by Findlaystudent, Window Shopper

  • Created: January 22, 2013, 3:43 pm
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2 comments
If three people are starting a business and one qualifies for a woman minority loan and is able to secure one, are the other two people still eligible for co-ownership, or do they need to secure the exact same loan amount from a different source? Thank you
Tags: Discuss Popular Topics, Starting & Registering a Business
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Findlaystudent | Window Shopper | 1/23/2013 - 1:19 pm

Thank you, that was very helpful

BizResearcher | Window Shopper | 1/23/2013 - 11:34 am

The first thing you need to do is contact an attorney to establish a legal
partnership agreement if you have not yet done that. When you have a
partnership, all partners are equally responsible for the debts of the
business unless your partnership agreement states otherwise. If one partner
is able to secure the loan, the other partners are still responsible to make
the payments. Your attorney can provide more information and help you set up
your business legally. If the person who secured the loan decided to leave
the business, you could have problems if such issues are not covered in your
partnership agreement. You also need to find out from the lender whether all
three of you can co-sign the loan if only one person actually qualifies for
it.