Assets acquired after SBA personal guarentee

by a searcher from Towson University

2 years ago

The personal guarantee was challenging to get my head around, but I do see it's importance in the 7(a) loan program.

I'm curious, does this guarantee apply to assets acquired after the original SBA-funded acquisition? 

Having a hard time finding info about this...

1 like
162 views
2 comments

searcher from Towson University

Makes sense. Thanks for the response Heather. I really enjoyed the "ETA Deal Structure" webinar that you and Lisa Forrest did through the Polsky Center...super informative.

2 years ago | like reply | 1 like

lender

Yes and no. No, the SBA lender would not be able to take any assets (real estate) you acquire after the loan is funded as direct collateral. But also yes, let's say you end up accumulating $1 million in liquid assets, but for some reason you default on the SBA loan you have personally guaranteed. The bank and SBA would have the ability to pursue that cash for repayment of the defaulted SBA loan under your personal guarantee.

2 years ago | like reply | 1 like

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.