Question: If a spouse owns more than 25% of a company, can we require them to sign the joint application form as a guarantor?
Answer: Yes. If the spouse is an owner, director, officer, or shareholder, etc., of the company, you can require that he/she guarantee the loan. Joint intent is not needed in this case, but you could still get it if you want. Keep in mind; however, you can’t require an owner, director, officer or shareholder (the spouse in this case) to assume personal liability for the loan (sign the note). If the spouse volunteers to do so, then you would need to get joint intent to show that you did not require them to sign the note.
Join us for the Compliance for Commercial Lenders Webinar on July 27, 2019. We will answer all the questions submitted during the live webinar, in writing.