13 C.F.R. § 120.160 Loan conditions.
Title 13 - Business Credit and Assistance
The following requirements are normally required by SBA for all business loans: (a) Personal guarantees. Holders of at least a 20 percent ownership interest generally must guarantee the loan. SBA, in its discretion, consulting with the Participating Lender, may require other appropriate individuals to guarantee the loan as well, except SBA will not require personal guarantees from those owning less than 5% ownership. (b) Appraisals. SBA may require professional appraisals of the applicant's and principals' assets, a survey, or a feasibility study. (c) Hazard Insurance. SBA requires hazard insurance on all collateral. (d) Taxes. The applicant may not use any of the proceeds to pay past-due Federal and state payroll taxes. Requirements Imposed Under Other Laws and Orders
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart A—Policies Applying to All Business Loans
Eligibility Requirements
§ 120.160 Loan conditions.
