And that's really what our kind of bread and butter is, just developing relationships, helping people and, and trying to get. Them into this world. And that's, that's what we're going to double down on and what we can offer.
Acquiring Minds
How to De-Risk the Personal Guarantee
Excerpts · 257 segments · ~1:10:41 long
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And if you call us at any. Time, we're just here to be a resource.
So there are personal guarantee insurance products elsewhere in the world, so there's a precedent for this sort of product.
Yes, there's, there's a product in several other countries outside the US And I think it's generally done pretty well. I think the difference is with the. US is you've got this really robust.
Sba, SMB lending market, which is different than where some of Those other countries. Operate anything I'm forgetting there, Brendan, the.
Growth in entrepreneurship through acquisition, through search funds, through the SBA loan program has really increased interest in what the personal guarantee does. The downside protection. You've had people talk about this for several years and many people, many folks on the commercial real estate side, you know, have done many deals before.
They're required to do personal guarantees from kind of early on in their careers. But in eta, often you've never taken out a loan before. So the personal guarantee is something new that you have to wrap your head around and it's a pain point and it's great.
There's other companies trying to do this. We think SBA loans are a really incredible product. It's an incredible vehicle to buy a small business with.
The returns you can get because you only have to put 10% down are really fantastic. Allows lenders to move loans that they wouldn't without the, the backing that the SBA provides. So anything that is growing this market and supporting entrepreneurs, we think is, is very good for everybody.
To your point about the fact that the personal guarantee is, is kind of ubiquitous in, in, in real estate land, and I've often wondered why there is such, I don't know, resistance in our market or maybe I should say acceptance in the real estate market. I don't know, maybe the howls on the real estate side are just as loud.
But someone pointed out to me that, well, in real estate land that going back to the, the liquidation of the assets, you always have the real estate. So if your real estate project doesn't turn out the way you want it to, there's still this asset that will, that will, that you can sell to pay down at least some of that, some significant part of that loan. Am I thinking about that the right way?
Yeah, 100%. And that's, that's one, one conversation we. Have with a lot of folks getting. Into this space where they say, how can I reduce my risk?
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