What does an SBA lender/originator (e.g. LiveOak) consider as "Marriage"?

searcher profile

September 30, 2021

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

Right now:
- I am not married (under common law or otherwise)
- I live with someone, and have lived with this person for several years
- I have a child with the same person

I may have the option to join that person's health insurance as an unmarried "domestic partner." To do this I need to demonstrate a couple things (e.g. shared residence, same driver's license address, maybe some shared property assets, etc)

I do not want to expose this person to an SBA loan co-signer guarantee (and I don't know if this person would even agree to co-sign an unlimited personal guarantee)

I would like to join this person's health insurance, but would doing so essentially be a "marriage" that would then drag that person into all the SBA stuff?

0
8
146
Replies
8
commentor profile
Reply by a lender
from The University of Chicago in Schaumburg, IL, USA
If you are not subject to a formal marriage, common law marriage or civil union, you can safely check any "Not Married" boxes. Nonetheless, SBA loans require a personal guaranty and a personal financial statement from the guarantor. To the extent that significant personal assets to secure or support the loan are jointly owned by the guarantor and any other person (whether a spouse, partner or other), the lender may, possibly, require that other person to also provide a guaranty or agree to a lien on the significant asset(s)..
commentor profile
Reply by a searcher
from Columbia University in Jacksonville, FL, USA
Depends on the state but they aren't going to visit your house. IMHO, the SBA wants owner/operators to have most of the risk. Unfortunately, if you were to break up and your business was kicking ass and you are under common law, she may come after you. But I'm not attorney, I just occasionally stay at a Holiday Inn Express. Conversely, if your business liquidates she may also be on the hook if in Common Law state
commentor profile
+6 more replies.
Join the discussion