{meta_title}

SBA 504 Q&A: Adding Guarantors After Funding

May 2015

Q: Can a guarantor be added to a Small Business Administration (SBA) 504 project after the debenture has funded?

A: While Standard Operating Procedure (SOP) states that servicing actions should not be considered until a 504 loan has become seasoned (at minimum, in the funded portfolio for at least 18 months) the SBA would consider adding a guarantor at any time after funding provided the guarantor meets the same eligibility requirements that would be a part of the application process.

Documentation that would need to be obtained as a part of this servicing action is as follows:

1. Completed and signed SBA Personal History Statement (Form 912).

2. Joint Personal Financial Statement and the most recent year-end tax return (if the individual(s) will have greater than 20% ownership) in the EPC or OC. Note: if the loan is not seasoned, an explanation is required.

3. If applicable, verification of legal permanent resident status.

4. Upon SBA approval, a signed SBA Form 148 SBA Guarantee must be executed.

The less time the 504 loan has been in the funded portfolio, the more stringent the SBA is going to look at the request to ensure the new request does not affect applicant eligibility. As always, final approval of the request is at the sole discretion of the SBA.

If you have a question you'd like our SBA 504 loan experts to answer, email us at[email protected]or call 850.681.3601 or toll-free at 888.320.5504.