Finding Investor Guarantors for SBA Loans

June 11, 2024
by a searcher from University of Georgia in Atlanta, GA, USA
Has anyone encountered investors who are willing to act as personal guarantors for SBA loans? I’m curious about how often this happens and under what circumstances it might be feasible. I understand there’s a thin line between an investor who doesn’t want to PG and a searchfunder who is new to acquisitions and may not have a qualifying PFS to secure a complete SBA loan.
thanks in advance for the insight.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
in Mississauga, ON, Canada
Think like an investor and you find your answer.
But it's why even though an investor might get a 2-3x step up on their capital, often it's options not equity. So they get the benefit attuned with the risk, without the added risk. To be honest SBA is the closest thing to free money you get, Putting down a PG on a deal you'll operate should be a given if you're going to control the business.