What does an SBA lender/originator (e.g. LiveOak) consider as "Marriage"?

by a searcher from Harvard University - Harvard Business School

2 years ago

Right now:
- I am not married (under common law or otherwise)
- I live with someone, and have lived with this person for several years
- I have a child with the same person

I may have the option to join that person's health insurance as an unmarried "domestic partner." To do this I need to demonstrate a couple things (e.g. shared residence, same driver's license address, maybe some shared property assets, etc)

I do not want to expose this person to an SBA loan co-signer guarantee (and I don't know if this person would even agree to co-sign an unlimited personal guarantee)

I would like to join this person's health insurance, but would doing so essentially be a "marriage" that would then drag that person into all the SBA stuff?

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searcher from The University of Chicago - Booth School of Business

If you are not officially married, then you are not married. I would suggest that you talk to a lawyer for SBA purposes. Most will give you a free 30 min consult. If you have joint assets with your partner, the SBA loan situation is different. In some states, you may already be common law married, with little difference in being officially married and common law married.

2 years ago | like reply | 0 likes

lender from The University of Chicago - Booth School of Business

If you are not subject to a formal marriage, common law marriage or civil union, you can safely check any "Not Married" boxes. Nonetheless, SBA loans require a personal guaranty and a personal financial statement from the guarantor. To the extent that significant personal assets to secure or support the loan are jointly owned by the guarantor and any other person (whether a spouse, partner or other), the lender may, possibly, require that other person to also provide a guaranty or agree to a lien on the significant asset(s)..

2 years ago | like reply | 0 likes

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