Kevin Bell

Don’t Leverage Your House On An SBA, Do This

Twitter Post


If you’re looking for a business to buy, having a good loan broker on your team is super valuable.

I chatted with one yesterday and he dropped some value bombs 💣

Sure, over time you’ll be able to develop a list of lenders in your own, but it never hurts to have someone with 250+ different lending options readily available.

TONS of value. Here’s one piece of it👇

People are scared of the PG (personal guarantee) which is often why they’ll stay away from an SBA.

Most of the time it’s because there’s fear about your house being taken. 🏡

Legit fear. I get that.

But here’s a hack he suggested.

  1. Find a biz heavy on the assets. You’ll see this as FF&E in most cases. You can use this to off set the amount needed for the PG.


  1. You can take out a life insurance policy to use as leverage for the PG. the lender just needs to be made the beneficiary.

For example, if you needed to PG 1.5M, you could use the assets the company has and then the rest from a life insurance policy. If you have 3 owners you’re investing with, that life insurance amount can be split between the 3 of you.

Furthermore, it only needs to be for the terms of the loan. 10 year terms, 10 year policy. That’s it.

So much more to unwrap here, but hopefully that makes sense.

I talk to entrepreneurs, business owners and everyone in between about how they’ve started, bought or scaled their business.

Then I share it with you. If you liked this, I’d be extremely grateful for a repost and follow. I’ll even message you personally to thank you! 😎