Solved
Business loan used to purchase shares
A client of mine sold his shares in his S corp for 2 million back in March of 2023 to the other shareholders. The shareholders asked me to file the S corp return but it looks like the shareholders who purchased the shares took out a 2 million dollar SBA loan through the company to purchase the shares. I see this as a loan to shareholders but I don't believe there was a note between the shareholders and company. Any advice on how to handle this would be appreciated?
