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.
Title 13 published on 2013-01-01
no entries appear in the Federal Register after this date.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.