I have been researching this, but I'm still uncertain what our obligation is with respect to the 6% rate cap on a loan to a business that has a servicemember as a guarantor. The servicemember (guarantor) has entered active duty and requested imposition of the 6% rate cap on the loan for which he is a guarantor. Does SCRA require us to impose the rate cap in this situation? Are we required to determine whether or not this person's service would impact the ability of the corporate borrower to repay the loan? Is it material how significant a role the guarantor plays in the operation of the corporate borrower? Thanks for any help you can provide.

According to Section 207, the debt must be "...incurred by a servicemember, or by a servicemember and their spouse jointly..." to qualify for the 6% interest rate cap.

Section 103 provides that coverage of the Act may be extended to persons secondarily liable, including guarantors, but only by a court order.

Yes. Read the following case.

http://www.bankersonline.com/lending/catheycase.html

Very interesting...