StacksVerified U.S. regulatory reference

13 CFR §107.820

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
At the request of a Small Business or where necessary to protect your existing investment, you may guarantee the monetary obligation of a Small Business to any non-Associate creditor.
  1. (a)You may not issue a guaranty if:
    1. (1)You would become subject to State regulation as an insurance, guaranty or surety business;
    2. (2)The amount of the guaranty plus any direct Financings to the Small Business exceed the overline limitations of § 107.740, except that a pledge of the Equity Securities of the issuer or a subordination of your lien or creditor position does not count toward your overline; or
    3. (3)The total financing cost to the Small Business exceeds the cost of money limits of § 107.855.
  2. (b)Pledge of Licensee's assets as guaranty. For purposes of this section, a guaranty with recourse only to specific asset(s) you have pledged is equal to the fair market value of such asset(s) or the amount of the debt guaranteed, whichever is less.