Does anyone know of any helpful guides or resources surrounding personal guarantees with SBA lending? I am looking to gain a better understanding in order to get comfortable with the associated risk.
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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.
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.
Once you start to have any size of assets outside of qualified retirement accounts, signing a personal guarantee (often with your wife!) is a massive risk. Your job is not to go to zero!!
The search fund investor model leverages the ability of searchers to get SBA loans to fund often marginal deals with massive leverage. But of course that leverage is all hung on the searcher's neck and not the equity partner's.