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?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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