I agree with you guys, it's possible there could be some assets to lend against. One thing to note is that, per the original post, the client is negative $2MM on his balance sheet and he lent $2MM to the business.

This screams to me that it is unlikely he has any significant unencumbered assets... And definitely not enough to qualify for the $1MM he is seeking. Hopefully he has some personal real estate investments to capitalize.

(Unless someone here wants to lend on his equity in the business ;-) )