Ohio | Business Law
Legal Question
SBA Disaster Relief Loan
Following 9/11, my husband's aviation business received a SBA Disaster Relief loan. All 3 partners (and spouses) were required to personally guarantee the loan, but the collatoral was the airplanes and business assets. In 10/96, my husband was forced out of the business by the other 2 partners because he wouldn't sign a non-compete clause. *(On the advice of counsel, we formally turned in our shares to completely remove us from the business.) The majority partner then fired the remaining partner leaving him with the business and all the assets. A couple months ago, we received a notice from the SBA that the loan was in default. The remaining owner, in the meantime said he ''sold'' all the assets that covered the loan to a new company. He put a former low-level employee as the ''new owner'' renamed the business and is operating in the same location, with the same employees and the same assets (which covered the loan). He refuses to use them for the loan because ''he sold them'' although he recently sold an airplane registered to the new company to settle another of the previous company's debt. For 2 months, we have been trying to contact the SBA, but they don't respond. We're desparate and running out of time. Please help!
Share This On:
