Lenders often need guarantees for small business loans. And SBA loans generally require guarantees, although this requirement has been waived for small FDI loans linked to Covid-19. The eidl agreement requires any borrower who accepts a loan of more than $25,000 to promise a vast list of guarantees: I look at our SBA eidl loan agreement. I think there are some very strange clauses and I would like others to talk to us about what they think. I asked a lawyer to read it to me slowly, but I haven`t heard anything yet. Here are some of the concerns: DEFAULT: the borrower is in default below this note if the borrower does not pay, if it is due in accordance with this communication, or if the borrower: A) does not comply with a provision of this note, authorization and credit agreement or other credit documents , one of the guarantees or the proceeds of it does not give a substantial fact to SBA) , or someone acting on his behalf, a substantially false or misleading presentation with respect to SBA F) of loan defaults or an agreement with another creditor, if the SBA believes that the default may significantly affect the borrower`s ability to pay that bill. Bankruptcy or insolvency proceedings I) If a liquidator or liquidator has designated a portion of its activity or property (`) Power an assignment in favour of creditors K) Any adverse change in financial situation or activity which, according to the SBA, may significantly affect the borrower`s creditworthiness) , merges, consolidates or otherwise alters the ownership or activity structure without the prior written consent of the SBA or SBA N) is the subject of civil or criminal action which, in the opinion of the SBA, can significantly affect the borrower`s ability to pay this bill. “Within 12 months of the date of this credit authorization and agreement, the borrower will provide proof of active and factual risk insurance, including fire, lightning and extended coverage, for all items used to secure this loan, at least 80% of the insurable value. The borrower will not terminate this coverage and will maintain this coverage for the duration of the loan. The SBA will look at the last three years of history to determine what the company could have paid if the disaster had not occurred.