The VC post of the day is from Zack Shulman (Cayuga Venture Fund) titled Should Founders Personally Guaranty Bank Loans?
If, as an entrepreneur, you’ve raised any institution money, the answer should be – as Zack explains – a decisive NFW. In addition, your institutional investors are likely prohibited from doing this by their fund agreements.
I’ve explained publicly to many of my government friends why the SBA is totally ineffective around lending to high growth, venture backed companies. Their requirement for a personal guarantee from the founders and any owners (including investors) of over 20% of the company is another reason the SBA is a total fail when it comes to lending for high growth companies.
To read the full, original article click on this link: Shulman: Should Founders Personally Guaranty Bank Loans? | Ask The VC
