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Borrower Guide

What to Know Before Signing a Personal Guarantee

What a personal guarantee does, how far it can reach, and the limitations a borrower may seek to negotiate.

Overview

Placeholder introduction. A personal guarantee makes an individual directly responsible for a borrowing entity's obligations, which can place personal assets at risk independently of the project or business.

Common variations

Placeholder section. This guide will distinguish full recourse, limited or capped guarantees, bad-boy carve-outs, and springing recourse provisions.


CPCA is a nonprofit oversight organization and not a law firm. This guide is general information, not legal or financial advice. Consult a licensed attorney in your state.

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