Do SBA loans need a personal guarantee?
A reader recently brought up a great question: If my business is has been paying on it’s SBA loan for 4 years, what are the chances I can negotiate removing the personal guarantee?
The chances aren’t great. SBA loans require a personal guarantee from all owners with a 20%+ stake in the business.
Refinancing your business loan with a non-SBA loan is a possibility, but getting it without a personal guarantee would be a reach. The lender might be willing to reduce the collateral securing the loan (i.e. homes, stock accounts, etc).
Even larger, well established businesses will often be required to personally guarantee significant, long term financing.