How Ink works
Last reviewed: May 2026
A clear process for borrowers who want to understand personal guarantee exposure before they sign.
Talk early. Apply when the loan is real.
You can talk to Ink anytime you are considering a business loan that requires a personal guarantee.
You should apply once your lender has preapproved the loan or the loan structure is specific enough to underwrite. That usually means you have a term sheet, conditional approval, commitment letter, signed LOI, draft purchase agreement, or a clear path toward closing.
If the loan is still hypothetical, the exposure is probably too hypothetical too.
Five steps, in order
Share your loan details
Ink starts with the core facts needed to understand the guarantee.
- Loan amount
- Loan type
- Borrower ownership
- Business being financed
- Industry
- State of residence
- State where the business operates
- Personal guarantee structure
Ink is not a lender and does not replace lender underwriting.
Estimate the exposure
A personal guarantee is not always the same as the loan amount. Ink helps estimate the gap that could remain after business recovery.
- Outstanding loan balance
- Business collateral
- Expected business recovery
- Personal assets
- Spouse or co-guarantor issues
- State-specific considerations
- Policy terms, if coverage is available
This is not legal advice. It is a structured way to understand the exposure before you sign.
Review underwriting fit
Ink reviews the borrower, business, loan, state availability, and policy fit.
- Loan size and structure
- Business type and performance
- Borrower experience
- Personal financial profile
- State availability
- Underwriting guidelines
- Policy terms
Coverage depends on underwriting, state availability, program rules, and policy terms.
Review coverage options
If eligible, the borrower may receive coverage options to review before closing or within the applicable underwriting window. The review should answer:
- What exposure is being insured?
- What is excluded?
- What limits apply?
- What happens if the guarantee is enforced?
- What happens if the loan is refinanced, paid off, or sold?
- What state-specific issues matter?
No premium, coverage amount, or policy term is final until confirmed in writing.
Bind coverage, where available
If coverage is approved and accepted, the policy is issued according to final terms.
Ink does not modify the loan. Ink does not remove the guarantee. Ink does not replace collateral requirements. The policy is separate from the loan and is for the insured borrower.
Documents to gather
Ink generally uses documents already prepared for your lender application, so borrowers are not starting from scratch. Exact requests vary by loan, borrower, and business.
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01
SBA Form 1919 — Borrower Information Form
The form completed with your lender. Section II is per owner.
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02
SBA Loan Authorization & Agreement
The signed SBA authorization from your lender.
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03
SBA Form 148 or 148L — Unconditional Guarantee
The personal guarantee signed at closing. Either form is fine.
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04
SBA Form 413 — Personal Financial Statement
One per owner with 20%+ ownership. Include all required owners.
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05
Personal tax returns — last 2 years
For each owner with 20%+ ownership. Combine PDFs if multiple owners.
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06
Business tax returns — last 2 years, if applicable
For the operating business being acquired or already operating.
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07
SBA Form 1050 — Settlement Sheet
The use-of-proceeds certification signed at closing.
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08
Business plan
The plan submitted with your SBA loan application.
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09
Business financials / P&L
Last 2 years plus trailing twelve months, if the business has been operating for at least one tax year.
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10
Resume / owner profile
One per owner with 20%+ ownership. Combine PDFs if multiple owners.
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11
Quality of Earnings report
Required only when the loan is used to acquire a business.
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12
SBA Form 159 — Fee Disclosure
Only if you paid a packager, broker, or other agent in connection with the loan.
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13
Seller note
Only if your deal includes seller financing.
What happens if the guarantee is enforced?
Every claim depends on the facts and the policy. A simplified sequence may look like this. Actual claims are governed by the policy.
Notice to Ink
If the business can no longer meet its loan obligations, the borrower notifies Ink according to the policy requirements.
Timely notice matters. Most policies require specific notice procedures, and waiting can affect coverage.
Business recovery
Business assets, collateral, and recovery value are applied toward the outstanding loan balance.
PGI sits behind business recovery. The deficiency, not the gross loan, is the relevant number.
Post-recovery gap
If business recovery does not cover the balance, a covered deficiency may remain under the personal guarantee.
This is the gap PGI is built around.
Covered loss review
Ink reviews the documented enforcement, verified loss, required documentation, exclusions, limits, and policy terms.
Coverage is governed by the policy, not by general claims of hardship.
Covered claim payment
If the claim is covered, payment is made according to the policy before covered personal assets are pursued.
This is a simplified educational overview. The policy controls.
Want to see how this fits your loan?
Every borrower has a different loan, balance sheet, state, and guarantee structure.