SBA rules · SOP 50 10 8.1

Does my spouse have to sign for an SBA loan?

A borrower's spouse must provide a full personal guaranty if the combined ownership of both spouses and minor children is 20% or more, and must sign collateral documents (with a limited guaranty) whenever jointly owned collateral is pledged.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

Full personal guaranty (combined ownership): Each spouse owning less than 20% of an Applicant must personally guarantee the loan in full when the combined ownership interest of both spouses and minor children is 20% or more. A spouse who individually holds 20% or more direct or indirect ownership must provide a full unlimited guaranty under the general ownership rule.
Collateral documents for a non-owner spouse: For a non-owner spouse, the lender must require the signature of the spouse on the appropriate collateral documents to obtain a valid lien on jointly held collateral. The non-owner spouse's guaranty is limited to their interest in the jointly held collateral, and non-owner spouses are not required to sign a personal financial statement.
Pledging personal real estate: When an individual alone or together with a spouse or minor children owns 20% or more of the Applicant, the lender must consider taking liens on personal real estate owned individually or jointly with the spouse. When a lien on jointly held property is mandatory to satisfy collateral requirements, the non-owner spouse's limited guaranty to secure the lien is required by policy.
Federal or state law and ECOA: Under ECOA rules for Special-Purpose Credit Programs, lenders have the right to obtain a spouse's signature (whether an owner or not) if required by Federal or State law to obtain a valid lien on collateral or protect the interests of SBA and the lender.
Ineligible person limited guaranty: When a limited guaranty is required by SBA to support the pledge of jointly held required collateral, an Ineligible Person spouse may execute the limited guaranty, provided they are not an undocumented alien in the U.S. illegally.

The source

What the SOP says

“Each spouse owning less than 20% of an Applicant must personally guarantee the loan in full when the combined ownership interest of both spouses and minor children is 20% or more.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Guaranty of Spouse: (lines 1350-1353)✓ Verified

“For a non-owner spouse, the SBA Lender must require the signature of the spouse on the appropriate collateral documents. Non-owner spouses are not required to sign the personal financial statement. The spouse’s guaranty secured by jointly held collateral will be limited to the spouse’s interest in the collateral.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Guaranty of Spouse: (lines 1350-1353)✓ Verified

“Any individual who has direct and/or indirect ownership of 20% or more of an Applicant must provide an unlimited full guaranty.

SOP 50 10 8.1, Chapter 5: Other Core Requirements > Personal Guaranties: (lines 1343-1349)✓ Verified

“When an individual alone or together with a spouse or minor children owns 20% or more of the Applicant, the Lender must consider taking as collateral liens on personal real estate (including commercial and investment properties not occupied by the Applicant) that is owned individually or jointly with that spouse or minor children.

SOP 50 10 8.1, Appendix 19: 7(a) Collateral Requirements > The loan must be fully secured (lines 5642-5656)✓ Verified

“A non-owner spouse who is required to provide a limited guaranty in order to secure a lien on jointly owned personal real estate is not a Supplemental Guarantor, because in this case the guaranty is mandatory.

SOP 50 10 8.1, Appendix 3: Definitions > SOP (lines 4415-4423)✓ Verified

“Therefore, the SBA Lender has the right to obtain the signature of an Applicant’s spouse (whether an owner of the business or not) or other Person if it is required by Federal or State law or to obtain a valid lien on collateral or for other reasons to protect SBA and SBA Lender interests.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements (lines 321-326)✓ Verified

“When a limited or supplemental guaranty is required by the Lender for their approval, or by SBA to support the pledge of jointly held required collateral, an Ineligible Person (except for undocumented aliens who are in the U.S. illegally) may provide a limited guaranty.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Direct/Indirect Owners (lines 533-537)✓ Verified

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