Non-SBA Bank Debt Corporate Guarantee

Banks will ask but not all banks will ask so you can use this as a negotiating point to get rid of it. You can also break this down logically (and I know I have a thread somewhere on this). They don't really want a PG on you, they want a ring in your nose they can pull on when times get tough. PG's are limited legally and practically but almost unlimited emotionally. You can solve the bank's underwriting logically where they get what they want without the PG, and you sleep well at night.

I agree with Juan. We do quite a bit of non-sba business acquisition financing, and usually the lenders will require a personal guarantee. If the acquisition target is going to continue to exist but ownership is in the name of another entity, then they will almost always require the guarantee of the purchasing entity. This is to ensure that they have the ownership entity tied into the deal. If you have a big fund or multiple companies you operate, they will also often want the corporate guarantee for outside support. Except for the cases where we see a large strong PE firm doing a deal conventionally, or a really low LTV/LTC with hard collateral backing most of the loan (meaning little goodwill exposure), we typically see lenders require a personal guarantee for all 20% or greater owners, just like the SBA does. I am more than happy to discuss in more detail at any time at --@----.com