120.160—Loan conditions.
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.
(d) Taxes.
The applicant may not use any of the proceeds to pay past-due Federal and state payroll taxes.