I have a client that has an SBA loan that is bound by covenants. He'd like to sell a substantial portion of his equipment that is secured by the loan and purchase other equipment which he has to get permission to do. The bank is asking the client for income and cash projections which I have for tax and operating purposes. My projection assumes revenue for the remainder of 2020 will be the same as 2019; however, I in no way can guarantee this of course. I'm worried that even with a disclaimer on the projection that I'm opening myself up to liability should the client default on the loan, which has a higher likelihood than average because the client is a terrible money manager and declines to act on my advice most of the time. Opinions? Should I call my liability insurance company?
Thanks for any thoughts you have on this!