SBA has made available an updated Word version of SBA Form 148L, Unconditional Limited Guarantee (dated 06/25). This version of the form may be used immediately. The official fillable version of the form will be posted to the SBA website when it becomes available.
The 148L form is used for guarantors who are not required to provide full guarantees, e.g., supplemental guarantors; non-owner spouses who are required to pledge their interest in jointly owned personal real estate; and, in partial change of ownership transactions, sellers who are retaining ownership interests less than 20%.
The form allows the lender/SBA to select from a list of “payment limitations“, which includes “time“. In the revised form, the “time” option has been amended to clarify that, while the guarantee is effective for the specified number of years after final loan disbursement, if the loan is in default at the end of the guarantee period the guarantee will continue “until all defaults are cured and payments are made when due [with no deferments] in accordance with the term of the Note for a period of 12 consecutive months“. This change was made to “mirror the language used in SOP 50 10 8 for 2-year guarantors in 7(a) loans for partial changes of ownership.”
[Reminder: Access to the revised form is not yet available from the SBA website. Lenders must follow the link in this message, or in the SBA transmittal email to obtain the 06/25 version of the form.]
