Background of Question:
If the primary borrower doesn’t have enough experience in the business he wants to purchase, and has to bring in a partner who will have at least a five percent (5%) ownership interest (minimum allowed for a partner with the experience to meet this requirement.
Question:
Does the five percent (5%) owner need to sign as a 100% guarantor (where the primary borrower does not have sufficient experience?
Answer:
Yes, the lender will require the person who has direct industry experience to be one hundred percent (100%) guarantor of the loan
