LLC is primary borrower with two co-managers as guarantors. Is Reg B Joint Intent borrower's signature form necessary for co-managers?

No. You do not need joint intent for guarantors as they are not borrowers. If it is your bank's policy to require owners/principals/LLC members to guaranty loans to the business, you do not need anything. You should make sure the file reflects why the guarantors are there, was it required due to policy, due to need for added strength, voluntary, etc.

It does not appear spouses are involved, so that issue does not arise.

You will find some banks have a form where they make various parties signify their role (borrower, guarantor, etc.) This is an attempt to clarify roles for other Reg B reasons unrelated to intent to borrow jointly.

I feel differently, see this section of Reg B regarding the definition of an applicant:

1002.2
(e) Applicant means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. For purposes of §1002.7(d), the term includes guarantors, sureties, endorsers, and similar parties.


My understanding is that if you require the owners of a corporation to guarantee a business loan (by policy), then you do not need intent from them. But if you don't require it every single time by policy, or if anyone else who is not related to the business (spouse, etc.) wishes to be liable on the loan (such as for increased guarantor strength), then you must document their intent at application.

I will relent on the guarantor. Here is a link to a thread with my own recap. Sometimes when you discuss something so much, and I do discuss this constantly, the brain starts to go.

https://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1765226

Well, I'm glad I'm not the only one discussing this over and over and over and over............

What it comes down to is the file must explain how everyone who is involved in the transaction got into the transaction, and what value they add, and for business loans, their role in the business.

And now, a little twist on the issue: XYZ Farms borrowed with the wife and daughter as guarantors--I can find no resolution in the file of any incorporation, all I see is a signature card from several years ago explaining they changed from regular checking to partnership checking. There are loan specific guarantees in the file signed by all borrowers, but no borrower authorization form, so I know I have an issue with the wife at this point guaranteeing the loan (unless they can come up with a resolution), but what about the daughter? Would she need to be on the resolution also? Now that I've put it in writing I'm thinking yes--what say you?

Same question - if she is not part of the business, why is she guaranteeing?

Agreed with Kathleen

Thank you so much for breaking it down to a simple understanding!Sometimes I make it harder than it should be!