Realistically no. There is just no incentive for a bank to make that trade. Best case is they make a few points off a small loan, worst case is that things go horribly wrong with no recourse and someone loses their job. You may be able to find a junior debt provider but the cost / benefit is not in your favor.

Why are you and your partner afraid of the PG? If you are willing to contribute 30%+ equity and believe in the viability of the business, aside from a horrific black swan event you should never have to worry about defaulting on the loan. SBA all day and spend a little more on good life insurance policies for the both of you.

What exactly do you mean by "solid equity contribution"? Is this your down payment, and if so, what % of the purchase price? If the target company is a service company as you say, then there probably aren't too many meaningful tangible assets, so I think your banking options will be limited, even if you do an SBA loan.

The PG is required if the loan is an SBA loan. If there is collateral either inside or outside of the business you can avoid the SBA, and thus (potentially) avoid the PG. feel free to reach out and I can try and point you in the right direction. [redacted] or[redacted]

Hi Susan. We've been quite successful getting loans for deals of this size without any PG. Send me an email at [redacted] and I can provide some more details on the deals we've done, and what was required of the banks to avoid the PG.

We help companies secure financing in these situations and happy to discuss issues and expectations with regards to Personal Guaranties. Please email me at [redacted] if you would like to schedule a discussion.

This is a great question as i haven’t been able to find a bank who will do SBA loans without a PG and/or a real estate lien on personal property so far . In addition, my understanding is that if the loan applicant has any real estate in their name, SBA would want a lien on it, Im glad to see a few responses here from potential lenders who feel comfortable with no PG and will follow up.

SBA requires PG on any available personal assets, specifically your home. No bank that is underwriting SBA loans is going to deviate from that requirement. If PG is not an option, then technically SBA is not an option.

There are definitely bank lenders willing to provide non-recourse financing to experienced operators/sponsors for companies with a history of profitability and recurring revenues. Financing typically up to 35-40% of purchase price with ~ 5% interest rates. No PG needed, but this only works for high quality companies and requires significant cash equity investment.