Q: My LLC got & spent $48k EIDL, but I'm now out of business & can't repay. If I dissolve b4 payment is due can I get out?
It's a business of one. The EIDL/SBA contract lists my LLC as the borrower but it's my name as the authorized signer and manager of the biz. Biz has no assets or collateral. If I close the biz can they come after me personally to repay EIDL? To get out of paying is there anything I must do such as notifying SBA that the LLC is out of business and provide documents that the biz has been closed with the state?
A: You cannot dissolve the LLC unless you can swear under penalty of perjury that it owes no debts. But the answer to your question will depend on the language in the loan documentation you signed. That is your contract. A lawyer would have to guess what your documents say in order to answer your question. You could always try to anonymously call and see what the lender says, but that will only work if the same document is signed by every company that takes out a loan and the document did not change terms over time. Your best bet is to see an attorney to evaluate the language in your contract and see your best path forward. Best wishes!
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