13 CFR § 107.820 - Financings in the form of guarantees.

---
identifier: "/us/cfr/t13/s107.820"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 107.820 - Financings in the form of guarantees."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "107.820"
section_name: "Financings in the form of guarantees."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "107"
part_name: "SMALL BUSINESS INVESTMENT COMPANIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
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"
---


# 107.820 Financings in the form of guarantees.

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.

(a) You may not issue a guaranty if:

(1) You would become subject to State regulation as an insurance, guaranty or surety business;

(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) The total financing cost to the Small Business exceeds the cost of money limits of § 107.855.

(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.