Can I find out if the business owes money under a government loan or subsidy program?

It's worth asking directly and reviewing carefully, since government loans and subsidy programs don't always show up on a standard corporate or lien search the way a bank loan secured against equipment might. Some government financing does come with registered security, in which case a Personal Property Security Act search would reveal it, but others are structured as conditional grants, forgivable loans, or subsidies with repayment triggers tied to specific conditions (like maintaining a certain number of employees, or the business remaining in operation for a set period) that aren't necessarily secured or publicly registered at all.

This matters because some of these programs can trigger repayment obligations specifically upon a change in ownership or a business ceasing to meet its original conditions, which a sale can potentially trigger without anyone realizing it until after the fact. Reviewing the seller's financial records and directly asking about any government financing, grants, or subsidies received, along with their specific terms, is the practical way to catch this.

Ask the seller for details of any government program funding and review the terms for change-of-ownership or repayment triggers before closing. A Treadstone business lawyer can help review these terms as part of your due diligence.