How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask MShore Law Your Own Question

MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
17924466
Type Your Business Law Question Here...
MShore Law is online now
A new question is answered every 9 seconds

SBA wants to collect. Im a partner (CTO) in a WA based corp

Resolved Question:

SBA wants to collect. I'm a partner (CTO) in a WA based corp small business. I resigned from the company in early 2007, however, in 2003 we applied for a 3 year SBA 50K loan which according to my copy of the paperwork, expired in Oct 2006. I recall a conversation where my partner wanted to extend the loan and I declined, but I have no proof of that. I called the lender in late 2007 to very loan balances and they faxed me a copy of the balance and transactions showing a 12k balance to be paid off within 3 yrs. Now last week I get a letter from the SBA wanting to contact me. I called the SBA and the balance is now 50K and they are wanted their money. How best to handle this situation so that the SBA collects first from the business and then from my partner (CEO / CFO) before they start collecting from me? I also am not sure how the loan was extended past 2006 when I recall declining the extension.
Submitted: 2 years ago.
Category: Business Law
Expert:  MShore Law replied 2 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Am I correct to assume that you did not personally guarantee the extension or any additional loan in excess of the initial $50,000 that was repaid down to a balance of $12,000?
Customer: replied 2 years ago.
The lender says I'm on this loan and the balance is 50K. I don't know how that could be because I have a copy of the loan documents that show the loan expired in 2006. But for the time being, I'm assuming that I'm a guarantor on this loan because that is what the lender is telling me. I've asked for a copy of the loan documents and I expect that somehow my devious partner has got me on the hook.
Expert:  MShore Law replied 2 years ago.
Thank you, XXXXX XXXXX challenge the notion that you are a guarantor by requesting a copy of the document you signed whereby you agreed to be liable for or otherwise personally guarantee any sum in excess of the original loan amount.
Customer: replied 2 years ago.
Thank you, XXXXX XXXXX that yesterday. My question is:

How best to handle this situation so that the lender collects first from the business and then from my partner (CEO / CFO) before they start collecting from me?
Expert:  MShore Law replied 2 years ago.
As a personal guarantor you are not the party with primarily liability, as a guarantor you guarantee payment in the event of a company default should the company fail to pay. You and your partner are on equal footing in terms of each being personal guarantors. However, because you never personally guaranteed any sum in excess of the original $50,000 you would argue that you never benefited from the additional loan, are no longer affiliated with the company,and your personal guarantee was limited to those loans which you approved while you were a member of the company (as evinced by your signature on such loan documents)
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience: Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
MShore Law and other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA