Q-6. What type of collateral do I need for a loan?
Repayment ability from the cash flow of the business is a primary consideration in the SBA loan decision process but good character, management capability, collateral, and owner's equity contribution are also important considerations. All owners of twenty percent (20%) or more of the business are required to personally guarantee SBA loans.  The SBA does not deny approval for a SBA Guaranty Loan solely due to lack of collateral; however, it can be used as a reason, in addition to, other credit factors.

For more information on requirements on a SBA Guaranty Loan, as well as, our guaranty loan programs available, please visit us at www.sba.gov/services/financialassistance/sbaloantopics/index.html.