What if you Do Not Want to Personally Guarantee an SBA Loan?
If you fail to pay back while adhering to the terms agreed upon, your lender reserves every right to sell off your personal assets to recover the small business loan amount. This may include your personal possessions like your car or home.
Banks require a personal guarantee for SBA loans. However, most borrowers prefer not to have the burden of a personal guarantee over their shoulders. In case you do not want to personally guarantee a loan, you will probably not qualify for one.
Picking a Lender That Does Not Ask For Personal Guarantees
There are several alternative lenders that provide funds without the need for a personal guarantee. Note that there still are a few sacrifices you would need to make in order to get a loan without a personal guarantee. The most important of them are cost and size. In case you are unable to personally guarantee a loan, you will have to settle for a lesser amount of money. Besides, you have to be prepared to pay higher interest on the borrowed amount.