Limited Guarantee on Pari Passu/Conventional Debt on top of SBA?

searcher profile

June 25, 2025

by a searcher in Nashville, TN, USA

I am looking at an opportunity requiring Pari passu debt ($2-3MM) on top of $5MM SBA. Does anyone know if it is possible to bring in a limited guarantor (outside of the equity stack) to guarantee ONLY the pari passu portion of our debt? Is that possible, or would they be required to guarantee the full amount?
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commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
I'm not 100% sure, but I would have to imagine they would need to guarantee both. I don't think the SBA would be happy if there was less risk for the pari passu debt than the SBA debt
commentor profile
Reply by a lender
from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) in United States
Have worked through this exact structure — happy to talk through SBA + pari passu + PG options. Feel free to grab time: calendly.com/alan-pioneercap
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