Main Street Monday — SBA Releases Updated Form 148-L, Unconditional Limited Guarantee
June 2, 2025
Bob Coleman
Founder & Publisher
Main Street Monday — SBA Releases Updated Form 148-L, Unconditional Limited Guarantee
An SBA lender would obtain an Unconditional Limited Guarantee when requiring a limited personal guarantee from a business owner or guarantor.
Specifically, SBA Form 148L is used:
- When the lender agrees to limit the guarantor’s liability, usually based on a percentage of the loan or to a specified dollar amount.
- For non-owner individuals who are still required to provide a guarantee (e.g., spouses or key persons with limited control).
- In lieu of a full personal guarantee (SBA Form 148), which is required from owners of 20% or more equity unless a waiver is granted.
Common Scenarios:
- Partial equity owners (less than 20%) where the lender still wants a guarantee.
- Spouses in community property states, where a limited guarantee may be needed for access to jointly held assets.
- Strategic partners or investors where the guarantee is capped due to negotiated terms.
- Mitigation of collateral shortfalls — SBA sometimes accepts limited guarantees to enhance creditworthiness when collateral is insufficient.