SBA Loan Default Insights & Strategies: Personal Assets & Borrower Reporting Responsibilities

Sometimes we'll get a situation where the financial statement you provided two years ago when you applied for the loan shows things that aren't on your financial statement today. Sometimes we have to answer those questions.

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There was a Supreme Court justice many years ago, actually Indian descent, American Indian descent, by the name of Lord Manhattan. He said as it relates to income taxes that your obligation is to do everything in your power to minimize the amount of tax you pay. In other words, you're not obligated to finance the government any more than you legally have to.

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The same is true here. While your financial statement may look one way three years ago, it may look way different today. I'll tell you one other thing, because IRAs, KIOs, those kinds of plans are protected.

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One thing you never want to do is fund a failing business with a protected asset.

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