Is a personal guarantee required for an SBA loan? Also, if it is required can
it be structured as a non-reporting loan on my personal credit?
Thanks,
Keith Gilabert
I concur with the other posters, a personal guaranty is almost always
required (except perhaps in a case where the debt is 100% secured with cash
collateral). While many banks choose not to report the personal guarantees
pledged in connection with debt, some do, so you should ask your specific
lender what they do. In most cases, their policy is not negotiable so make
sure you know in advance how they handle it.
Jason Milleisen, Founder, Distressed Loan Advisors
The personal guarantee is a requirement. While the loan will most likely not
be reported to the Credit Reporting Agencies, and your credit score will not
be affected that way, the lender will surely pull your credit report at loan
origination. Furthermore, a lot of lenders do annual reviews, and as part of
that process they pull credit reports also.
Personal guarantees are part of any SBA loan. Most business loans do not
report to credit, unless there is a judgement filed after the business goes
into default. Most of these defaults can be settled with an "OIC" offer in
compromise before you would need any judgement filed against you.
Ryan@BridgeMgt.com Feel free to email me with any more questions
DLA | Performer | 5/17/2012 - 7:42 am
required (except perhaps in a case where the debt is 100% secured with cash
collateral). While many banks choose not to report the personal guarantees
pledged in connection with debt, some do, so you should ask your specific
lender what they do. In most cases, their policy is not negotiable so make
sure you know in advance how they handle it.
loanuniverse | Window Shopper | 5/4/2012 - 11:06 pm
be reported to the Credit Reporting Agencies, and your credit score will not
be affected that way, the lender will surely pull your credit report at loan
origination. Furthermore, a lot of lenders do annual reviews, and as part of
that process they pull credit reports also.
RyanBridgeMgt | Window Shopper | 5/4/2012 - 12:05 pm
report to credit, unless there is a judgement filed after the business goes
into default. Most of these defaults can be settled with an "OIC" offer in
compromise before you would need any judgement filed against you.
Ryan@BridgeMgt.com Feel free to email me with any more questions
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