13 CFR 120.160 : Business Credit And Assistance (Parts 1-100 To Parts 501-599) — (Parts 1-100 To Parts 501-599) — Small Business Administration (Parts 1-100 To Parts 148-199) — Business Loans (§ 120.1 To § 120.1900) — Policies Applying To All Business Loans (§ 120.100 To § 120.197) — Credit Criteria For Sba Loans (§ 120.150 To § 120.160) — Loan conditions.

The following requirements are normally required by SBA for all business loans:

(a) Personal guarantees. Holders of at least a 20 percent ownership interest generally must guarantee the loan. SBA, in its discretion, consulting with the Participating Lender, may require other appropriate individuals to guarantee the loan as well, except SBA will not require personal guarantees from those owning less than 5% ownership.

(b) Appraisals. SBA may require professional appraisals of the applicant's and principals' assets, a survey, or a feasibility study.

(c) Hazard Insurance. SBA requires hazard insurance on all collateral.

(d) Taxes. The applicant may not use any of the proceeds to pay past-due Federal and state payroll taxes.