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AmiSight 7/28: No Personal Guarantee – No Sympathy From Me

  • Writer: Ami Kassar
    Ami Kassar
  • Jul 28, 2023
  • 1 min read

I was asked to speak with an entrepreneur last week who had spent an hour complaining to a friend that he was constantly striking out getting SBA loans and only had interest rate options for growing (but yet profitable start-up).


He was exacerbated by the government, and the SBA was not doing anything to help him. The irony of the situation is that he could likely get a projection-based SBA loan. The issue and problem is the point-blank refusal to guarantee any debt personally.


The rule is simple and appropriate. Anyone who owns 20% or more of a company must personally guarantee an SBA loan. If you think about it, if the US taxpayer is guaranteeing the loan, the entrepreneur should also, or we would have a free-for-all on our hands.


 
 
 

1 коментар


Tim Tolan
Tim Tolan
31.07.2023 г.

No risk - no reward. When an entrepreneur discloses that are unwilling to personally guarantee a loan what they are telegraphing is they have their own doubts about the viability or success of the same business they want to borrow money for.

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