Want to stay below 20% on Eligibility Questionaire- help
by hotelguy, Window Shopper
- Created: October 16, 2013, 2:39 pm
- Updated: October 16, 2013, 2:39 pm
Applying for a loan for a to be built hotel. Investors are a small group - maybe 6 or 7. The operating principal will cap his ownership at a 19.9% equity interest to avoid disclosure of his assets as a "Principal" on the SBA 50 10 5(D) Eligibility Questionaire. His assets are immense. Can he take another 9% interest in the profits and just call it a "guarantee fee". This seems like it will be ok and keep everybody happy. Is there a limit to this procedure, can he take a 20% interest in the profits as a "guarantee fee" over and above his 19.9% interest? Or maybe 50%?
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