---
policyId: LOS-GUAR-001
title: Standard Guaranty Requirement
policyFamily: Guaranty
position: Standard
approvalStatus: Approved
owner: Loan Documentation
marketScope: National
lastReviewed: 2026-04-22
nextReview: 2026-10-22
usageCount: 72
tags: [guaranty, ownership, standard, approved]
---

# Standard Guaranty Requirement

Every person or entity owning twenty percent or more of the borrower will provide an unlimited, unconditional personal or corporate guaranty of the loan. Guaranties are joint and several and survive any change in ownership until the loan is repaid in full.

## Use when

Apply to every commercial loan to a closely held borrower. Ownership is determined from the borrower's formation documents and the most recent tax return.

## Escalate when

Loan Documentation approval is required to omit any twenty-percent owner, to cap a guaranty, or to accept a guaranty from an entity rather than its principals.