SBA Disaster Loans: Unofficial guide for freelancers and startups
Getting a loan for a business in these very uncertain times is an extremely risky move, especially if you have to personally guarantee the loan.For anyone here thinking about getting a loan, please get plenty of advice, especially legal advice, and make sure you will be able to pay it back. Otherwise I would urge you to look for other alternatives.It might seem hard or impossible now to close down your business, but it might get a lot harder to deal with the consequences of getting a loan to prop it up if you don't have a very good plan to recover.I've been through corporate bankruptcy (chapter 7) with a company that had multiple creditors. Even though there were no personal guarantees, one of the creditors decided to pursue legal action against us. 2 years after filing for bankruptcy, we are still dealing with a lawsuit by this one creditor (who by the way forced the company into bankruptcy in the first place).Btw, lawyers for a chapter 7 bankruptcy will cost you/your company $10-$20k.