Personal Guarantee
A commitment by a business owner to personally repay funding if the business can't.
A personal guarantee is a promise made by a business owner (or owners) to personally repay a loan if the business itself is unable to. It effectively ties personal liability to a business debt, giving lenders additional assurance, particularly for newer businesses without an extensive credit history.
Personal guarantees are common across many types of small business funding, and terms vary by program – your funding specialist can explain what’s required for a specific option.
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