Legal Question in Business Law in New Mexico
We have two SBA loans, we are a LLC and a LP, my brother is 10% partner. My questions has two parts:
1) why did the banks make a 10% partner sign on an SBA? The SBA website states only partners of 20% or more need to sign.
2) If we go bankrupt can the banks legally go after my brother?
Asked on 6/09/11, 2:49 pm
1 Answer from Attorneys
Kevin B. Murphy
Franchise Foundations, APC
As a Franchise Attorney I can say the following. Banks try to get everyone on the hook and whoever signed is liable. There position will likely be "we asked him to sign and he did." Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
Answered on 6/10/11, 7:19 am
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