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Old 04-18-2010, 04:41 PM
 
Location: Boca Raton, FL
5,677 posts, read 9,297,324 times
Reputation: 7512

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I've asked this before but here goes:

Husband and wife both own small businesses. Both have been affected the economy. Those supposed SBA loans would have been perfect for us. Nothing happened. Good credit. Had to resort to using personal lines of credit and credit cards for business purposes.

Same bank - 24 years. Bank calls last week (reaching out to customers - new thing!) and offers a loan against CD's (CD secure). The CD is presently making .84% or something like that. Not a big CD but it would meet our needs. They offered to extend the CD for 58 months at 3% - they would give us a loan for 95% at 6.250% which is great for us.

Problem - We could just do it but he is on the CD with his dad. Keep in mind, he could just do it (we don't need his dad to sign) but he would never do that and went to speak to his dad today. Keep in mind, nothing needs to be done - the money just stays there and we plan to pay this off within 18 months.

His dad said "he'd think about it"

My husband met with him today and not to knock my husband, sometimes, he makes it seem like everything is hunky dory. The next few months are slower for cash flow and we could use this now.

His dad is 87, soon to be 88. We have been there for him every step of the way. He does not need this money to live on at all. His son, my husband, is his only child.

I would love to hear responses if you have a child that has asked for help or what you would do.

We do have retirement accounts, however, we cannot touch them due to age restrictions. Husband's small business has been hurt by the economy and will improve when the economy does.
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Old 04-18-2010, 06:58 PM
 
Location: Boca Raton, FL
5,677 posts, read 9,297,324 times
Reputation: 7512
Smile Keep in mind

The bank statements come to my husband and if we had just gone ahead and done it, his dad would probably would not have noticed. Instead, he wanted to talk to his dad about it. Right now, I think we feel really let down.

Years ago, I (the wife) did well and I think his dad thinks that is still the case which it is not. We have verbalized that but the thought still stays (I think - could be wrong, but I think).

The funds in this account have not been touched and modified in over 15 years.
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Old 04-18-2010, 07:30 PM
 
12,869 posts, read 13,620,342 times
Reputation: 4453
i think it is nice that your husband would not disrespect his dad. (and didn't just go ahead and do it).

have you applied for an ARC loan? here is a list of some participating banks:
http://bizfinance.about.com/gi/o.htm...rc_lenders.pdf

there are also a few pointers on taking money out of a retirement account without penalty:
http://moneywatch.bnet.com/retirement-planning/blog/financial-independence/get-money-out-of-your-ira-early-no-penalty-no-p (broken link)

i do think that there should be some legislation to help people who are struggling where they should not suffer any tax consequences for hardship withdrawals.

Last edited by floridasandy; 04-18-2010 at 07:40 PM..
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Old 04-18-2010, 07:59 PM
 
Location: Boca Raton, FL
5,677 posts, read 9,297,324 times
Reputation: 7512
Smile The ARC loan

We were the first to apply for this loan. I even spoke to Wachovia several times; they told me it was so complete; everything documented to the penny but after 10 months, nothing.

My husband has done packages for several clients - they never got anything either. We spent over $1500 on submission fees and have a solid relationship with Wachovia.

My family always helped each other. I would think that his dad, at age 87 (almost 88) would like to see his son less stressed, more able to see him and be able to be more involved in his life. I guess I am wrong. I won't press it but it would be nice to enjoy life once in a while.

I am so disappointed - my husband is his only child, only relative other than a sibling. We have never been able to move b/c of his age and look out for him all the time. It's an hour drive one way and it's hard when you work 90-100 hours a week and now I don't see that stopping. Oh well.

My husband will not touch the IRA's and is so firm about it. Won't even talk about it. I don't get that either. We were always so good to my in-laws too and never expected anything. If my MIL were alive, this would not be an issue.

Last edited by Bette; 04-18-2010 at 08:01 PM.. Reason: Added words
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Old 04-18-2010, 08:17 PM
 
Location: Boca Raton, FL
5,677 posts, read 9,297,324 times
Reputation: 7512
Smile The ARC Loan - Part 2

FloridaSandy - I'll try again on the ARC loan - it was a great deal. Better than the CD.

This is what kills me - if we had gotten the SBA ARC loan last summer, we would owe so much less than we do now. That's why I know we have to do something.

It just kills me - we have never been late on a payment, always helped people out ourselves, been the slow and steady ones and now we need a little help - I mean, the loan is in his name, not his dad's - we will pay it back.

I even offered to rent out our home and live in our office. We're here all the time anyway, what's the difference? He said - we don't have a shower or a kitchen. For a year, I would do it. Like I said, we're here all the time.
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Old 04-18-2010, 09:32 PM
 
Location: 3rd rock from the sun
3,858 posts, read 6,357,276 times
Reputation: 1812
You are asking the father to use his assets as collateral on a loan. Your husband may have signing rights but who earned the money? Let father and son work it out and respect the decision.

Quote:
My husband will not touch the IRA's
I am pretty sure that an IRA cannot be used as collateral.
IRA CD as Loan Collateral - Dan Persfull

How can an IRA have father and son on it?
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Old 04-18-2010, 09:53 PM
 
Location: Boca Raton, FL
5,677 posts, read 9,297,324 times
Reputation: 7512
Smile Ira

The IRA's belong to my husband and myself. We can't touch them due to the age restriction. All the accounts we have are like this. His FIL is not on them; sorry for the confusion.

We are not asking to borrow the money, just to use it as collateral on a loan we have been approved for. My FIL does not have to co-sign.

My husband and I helped care for my MIL who had Alzheimers - therefore, no expense for caregivers, etc. We have also helped my FIL during some illnesses.

It was something presented to us by the bank. We didn't think of it. My husband and his dad are joint on the account. Either can withdraw or deposit without the other. My FIL doesn't really bank at this bank; he uses another but this was my MIL's bank. She is gone now.

As a parent, I want to see my children balanced, happy and produtive people. If the situation arose, we would help our children if we had it and it wasn't a repeat offender situation.

I mean, what's he going to do with it? Take it with him? He lives on 5% to 10% of what he gets, has no expenses, has the VA for medical and a State of Florida pension that is beyond what people would get today.

He gives $$$ to a bimbo down the street to get her home out of foreclosure a few times. We got that stopped finally. Well, I'm just ranting. I am so sorry my husband even asked him. He's the last one of our parents left and it just makes me so sad. It'll be his loss; now, my husband and I will probably get 2nd jobs and not be able to go see him at all.
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Old 04-19-2010, 11:09 AM
 
12,869 posts, read 13,620,342 times
Reputation: 4453
i can see where you are frustrated, but i think you are venting on the wrong person. of course he can't take it with him, but maybe he will leave it to your husband and you when he goes.

it does seem like the most responsible people are being the most disproportionately punished with the way the system has been set up, but try again with the ARC and see what happens. i have also heard about a program which gives free business advice called score, composed of retired business executives. you could contact them as well and get a counselor:
http://www.score.org/ask_score.html
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