Borrower change from LLC to C-Corp impact on current mortgage

[Frank Y.]

Hello all: We lent money to a LLC (two members) last month, and now the LLC wants to change its structure to C-Corp. What impact do we have to our current Mortgage and Note, or what do we (private lender) need to do? All inputs are very much appreciated.

Thank you. 

Frank

[Jeff S.]

I assume you mean that they are keeping the LLC intact and merely changing its tax structure. If so, this has no impact on you, @Frank Y.. The LLC still owes you the money and all personal guarantees are still valid. You need to do nothing.

Read here from the IRS: LLC Filing as a Corporation or Partnership

It's a different story if you're saying that they are dissolving the LLC and forming a brand new entity. In this case, your loan would become due and/or the new entity would assume the loan. I doubt that's the case from what you wrote.