A personal guarantee is a legal agreement between you and a lender that holds you personally responsible for your business’s debt in case of default. If your business can’t repay the loan, the lender can seize your personal assets to cover the debt and recoup its losses. Many lenders require a personal guarantee because it…

Randa Kriss writes for NerdWallet. Email: rkriss@nerdwallet.com.

The article Are SBA Loans Personally Guaranteed? originally appeared on NerdWallet.

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