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.