Small business answers — NOW!

Personal guarantee

Question
Will I have to sign a personal guarantee for a bank loan for my business? 
Answer
For most small-business bank loans, the owner must sign the loan documents twice: once as the representative of the company, usually the president, and once individually, to secure the loan with the personal financial assets.

The exception to this is when the company has assets enough to secure the loan by itself. In this case, only the representative of the company would be required to sign. 
 
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