For SBA lenders
Short answer
A trust or estate can be an eligible guarantor if it directly or indirectly owns 20% or more of the business and the individuals controlling the trust/estate provide their personal guaranties.
If a trust or estate owns 20% or more of the applicant business, it must also provide a guaranty. Furthermore, the SBA requires that the individuals who control the trust or are the beneficiaries of the estate (e.g., trustees, executors, primary beneficiaries) also provide their personal guaranties. This ensures that the ultimate decision-makers are personally liable, consistent with the 20% ownership rule for individuals.
A business is 30% owned by a family trust. The trust must provide a guaranty, and the two trustees who control the trust's assets must also provide full personal guaranties for the SBA 7(a) loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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