Wells Fargo Businessline Line of Credit

[Leigh Ann Smith]

We have a business unrelated to real estate that is a sole proprietorship (no LLC). An offer came in the mail from Wells Fargo saying that our business is pre-qualified for a BusinessLine line of credit of up to $100,000 at 5% - 13% "depending on your personal and business credit evaluation".

We have just set up an LLC for real estate investing. Assuming the terms are favorable, could we take out this loan for our sole proprietorship, then transfer the money to our LLC? Since the loan would not be secured by the rental property, I would presume that the bank would not have any say over what we do with the money as long as we are making the payments.

Also, would this be piercing the corporate veil?  I'm going to post a separate message about the corporate veil, because there are some generalities that I do not understand.