IMO, the people who head a corporation should be held completely responsible for the actions of the corporation. For example, when a corporation illegally dumps waste, the corporation gets punished while the people who made the illegal decision get to keep their salary and a clean criminal record.
I always thought running a business should be a personal risk, not something you can file a form for reimbursements when you fail. If the loaner was someone not associated with the company, I can see the point. But when the loaner is 100% the reason of the failure of the business, why should they see a cent in return?