The court overruled an objection to a claim that was based on a loan made ostensibly to the debtors but used by the debtors' owner for personal purposes. The evidence indicated that a portion of the funds were used to pay operating expenses for one of the debtors. In addition, the court found that despite a purported transfer of all of the debtors' assets prior to the loan being made, the owner continued to operate the business and the lender could reasonably have believed the funds would be used for business purposes. The court approved a reduced amount of the claim as agreed to by the bankruptcy trustee.