Now you finally know what too big to fail really looks like. The FDIC went coast to coast in taking over Silicon Valley Bank in California and Santa Clara CA, Signature Bank in the Big.
“What do you mean, you can’t extend my loan?” I’ve heard this question more than once, heard of it a lot more. And the puzzled, even shocked query isn’t coming from a defaulted borrower. In…
Bankers Hours
As the pandemic passed its one year anniversary observance, a lot of entrepreneurs and business owners are learning firsthand what a personal guarantee on debt really means.
Most likely, it means that someone is demanding that you pay them money that you don’t have the means to pay. You personally promised to repay a loan to your business. But your enterprise has been either shuttered for months or operating at 50% of capacity or less; thus, there isn’t enough revenue to service the debt.
Doesn’t matter, says the lender: When you signed the docs, you affixed your signature agreeing that you’re on the hook, no matter what happens to your business.