Loan from Investment Group - due diligence

[Charles2000]

What is the name of your state (only U.S. law)? Georgia

Hi I am applying for a business loan. I had a misdemeanor violating the restraining order contacting my ex wife on my record. I am looking for an investment opportunity to borrow a substantial loan from an investment group. Do you think the misdemeanor will prevent me from obtaining the loan from the private group from a venture capital? How about the bank? What is the due diligence regarding the loan approval? My credit is fine and did not have bankruptcy. However, I had an arrest and misdemeanor violating court order. And that was 2 years ago. Does venture capitalist, private equity will reject my application for the loan based on my criminal background? Thanks, CM

 

[quincy]

What is the name of your state (only U.S. law)? Georgia

Hi I am applying for a business loan. I had a misdemeanor violating the restraining order contacting my ex wife on my record. I am looking for an investment opportunity to borrow a substantial loan from an investment group. Do you think the misdemeanor will prevent me from obtaining the loan from the private group from a venture capital? How about the bank? What is the due diligence regarding the loan approval? My credit is fine and did not have bankruptcy. However, I had an arrest and misdemeanor violating court order. And that was 2 years ago. Does venture capitalist, private equity will reject my application for the loan based on my criminal background? Thanks, CM

Any time anyone has a criminal record, it can have an impact on borrowing. You can be denied loans or the terms of the loan may not be as favorable as they would be if you did not have a criminal record.

That said, a misdemeanor relating to a violation of a restraining order is different than a money-related crime.

But there is no way for anyone here to say if you will be prevented from obtaining a loan. That depends on the conditions set out by those from whom you seek money. You will have to apply and see.

 

[quincy]

Thank you for your reply. I have already spent over $50K in developing the project. My fear is to raise the issue and the private investment bank walks away. As you suggested I think I have to wait and see but then it will cost me probably another $25-50K for engagement fee and other fee to find out if my background check will become an issue in preventing me to obtain the investment loan. Probably, I should be asking this question from investment group rather than in this forum. Thank you though for sharing your thoughts.

Have you thought of having the misdemeanor expunged from your record (or your record restricted)?

It might be that two years is not a long enough time in Georgia for record restriction to be considered, and I am not sure what offenses might be ineligible for expunction, but you might want to look into this. If possible to have the record of your misdemeanor restricted, this can help you in the future.

Here is a link to the Georgia Justice Project on expungements: http://www.gjp.org/programs/criminal-records/faqs/faqs-expungements/

Good luck.


(oh. I see you deleted your post ... )