The board of directors of a corporation are not personally liable for the debts of the corporation which they serve unless specifically stated in the loan agreement. This is property which could be pledged as guarantee for repayment of of the proposed loan. A lender will want to look at the applicant's most recent balance sheet. The Balance Sheet shows assets, liabilities and equity. Assets are things that are owned by the organisation which increase its value.
Liabilities are amounts owed to other people which decrease the value of the organisation.
Equity is what the organisation is worth. This definition indicates that one of the most significant characteristics of the corporation is its separate legal entity. The corporation is regarded as a legal person, having continous existence apart from its owners. By way of a contrast a partnership is dissolved by the death or retirement of any one of its members, whereas the continuous existence of a corporation is in no way threatened by the death of one of its members. Limited Liability Creditors of a corporation have a claim against the assets of a corporation, not against the personal property of the owners of the corporation.