13 CFR § 107.1720 - Characteristics of SBA's guarantee.

---
identifier: "/us/cfr/t13/s107.1720"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 107.1720 - Characteristics of SBA's guarantee."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "107.1720"
section_name: "Characteristics of SBA's guarantee."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "107"
part_name: "SMALL BUSINESS INVESTMENT COMPANIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 662, 681-687, 687b-h, 687k-m."
regulatory_source: "61 FR 3189, Jan. 31, 1996, unless otherwise noted."
cfr_part: "107"
---


# 107.1720 Characteristics of SBA's guarantee.

If SBA agrees to guarantee a Licensee's Debentures or Participating Securities, such guarantee will be unconditional, irrespective of the validity, regularity or enforceability of the Debentures or Participating Securities or any other circumstances which might constitute a legal or equitable discharge or defense of a guarantor. Pursuant to its guarantee, SBA will make timely payments of principal and interest on the Debentures or the Redemption Price of and Prioritized Payments on the Participating Securities.

[63 FR 5873, Feb. 5, 1998]