Personal Guarantee Loan Agreement Template for United States

The Personal Guarantee Loan Agreement serves as a critical financial instrument in situations where additional security is required beyond the primary borrower's commitment. Commonly used in the United States for business loans, startup financing, and real estate transactions, this agreement provides lenders with added security by making a third party personally liable for the debt. The document typically includes detailed loan terms, repayment schedules, default provisions, and specific guarantee obligations, all while ensuring compliance with federal and state lending regulations. It's particularly valuable when dealing with new businesses, borrowers with limited credit history, or high-risk loans.

1. Parties: Identification of lender, borrower, and guarantor with full legal names and addresses

2. Background: Context of the loan and guarantee arrangement, including purpose of the loan

3. Definitions: Key terms used throughout the agreement including Loan, Guarantee, Default, etc.

4. Loan Terms: Principal amount, interest rate, repayment schedule, and term of the loan

5. Guarantee Provisions: Scope and nature of the guarantee, including guarantor's obligations and liability

6. Representations and Warranties: Statements of fact by guarantor regarding their financial status and capacity

7. Events of Default: Circumstances constituting default under the agreement

8. Remedies: Lender's rights and remedies upon default, including enforcement procedures

9. Governing Law: Specification of applicable state law and jurisdiction