Are personal guarantees and collateral required for loans made under the ESB Loan Guarantee Program?
Owners of a company with a greater than 20% ownership must provide personal guarantees on an ESB guaranteed loan. In addition, adequate collateral is generally required to protect the interest of the program. The collateral must be of such a nature that repayment is reasonably assured. The program, funded by Master Tobacco Settlement proceeds received by the OneGeorgia Authority, has a fiduciary responsibility to use prudent lender credit guidelines in considering, making and administering loan guarantees.
