If I’m financing a small business loan with the SBA,what are my best options to quickly and cheaply move the property out of its reach?
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If I’m financing a small business loan with the SBA,what are my best options to quickly and cheaply move the property out of its reach?
I am on the verge of purchasing a business and financing that business via the SBA (Small Business Administration). I have been assured that the SBA will try to lien as many of my assets as possible as collateral for the loan. I have a mortgage on the property and would like to re-mortgage at some point in the future.
Asked on October 17, 2018 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
There is no legal way to "quickly and cheaply move the property out of its reach." Every state has some version of what is called the "Fraudulent Transfers Act." This is a law that states that if you transfer, conceal, hide, etc. assets when you know or a reasonable person would know that you do or will soon have a debt or obligation and do so to protect them from the creditor, that the transacton, etc. may be voided and undone or reversed. In short, if you try to hide assets from a creditor, the creditor can take you to court and reach them.
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