Key Takeaways
- A personal guarantee makes you personally responsible for repaying a business loan, even if the business fails or is a separate legal entity.
- Collateral is a specific asset you pledge to a lender, which can be seized if you default on the loan.
- For a personal guarantee, lenders can pursue your personal assets, like your home or savings, to satisfy the debt.
- Collateral reduces lender risk, potentially leading to better loan terms, but you risk losing the specific asset pledged.
Personal Guarantee and Collateral
Jonathan Lamb
I have experience on “both sides of the table” as a banker and an SBA borrower. My background includes building, owning, operating, and selling a 12,500 square foot childcare center with over 190 kids and 35 employees.
I spend most of my day speaking with child care owners from across the country about their child care business and financing needs. My goal is to help child care owners obtain the funding they need to survive, expand, grow, or achieve whatever their business goals might be.
Please send me a connection request here at childcareowner.com, or shoot me a quick private message. Or, if you'd like to chat give me a call at 765.730.7077
Jonathan Lamb
SBA & USDA B&I Business Development Officer
North State Bank
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