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arty's guarantee such
as a cosigner or a surety, or may request a government
guarantee from the U.S. Small Business Administration or
other government agency.
In addition to the personal guarantee that you give,
under the Equal Credit Opportunity Act the lender is
allowed to require another person's guarantee should your
application fail to meet the lender's standards of
creditworthiness. If all or most of the assets listed on
your personal financial statement are owned jointly with
your spouse, or with someone else, the lender is likely to
require such a guarantee, But the lender may not require
that your spouse be the guarantor,
In the case of secured credit, the lender is allowed to
obtain a spouse's signature on certain documents when the
applicant offers, as security for the loan, property that
the two own jointly, In this case, the spouse or other
co-owner may be asked to sign documents--such as a
mortgage or other security agreement--that would be
necessary under applicable state law to make the property
available to satisfy the debt.
Sources of Technical Assistance
Before you approach a lender, you might want to seek the
advice of another, more experienced "set of eyes" to review your
business proposal, particularly if you are a first-time
borrower. By doing so, you'd be getting the loan package in
shape to make it easier for the lender to reach a favorable
credit decision. There are some business support groups whose
members could counsel you on how your package looks. A qualified
counselor might even discover that you really don't need more
money, and instead suggest better inventory control, improved
marketing techniques, or other changes that could actually solve
your growth problems. One source of counseling available to
small businesses is the Service Corps of Retired Executives
(SCORE), which is sponsor
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