How to get around SBA's 20% rule

February 27, 2020
by an investor from University of California, Berkeley - Haas School of Business in San Francisco Bay Area, CA, USA
SBA loans require every investor who owns more than 20% to sign a personal guarantee. Unfortunately, this is a non-starter for many investors. Are there any ways to legally structure around the 20% rule?
Some ideas:
1. Investor receives 30% but splits it between himself and his wife, so 15% each on the cap table.
2. Investors receives an option or a warrant
3. Agreement between searcher and investor that says the investor can purchase a certain number of shares from the searcher at a pre-set price at a later point
I'm not trying to do anything illegal or unethical, but want to understand what potential structuring options are.
in Yorba Linda, CA, USA
from Michigan State University in Newport Beach, CA, USA