Finance
A South Dakota commercial lender requires a 'personal guarantee' on a business real estate loan. This means:
AThe business guarantees the loan will be repaid using its revenue
BThe business owner personally pledges to repay the loan if the business defaults✓ Correct
CA government agency guarantees repayment to the lender
DThe borrower guarantees the appraised value of the property
Explanation
A personal guarantee makes the business owner personally liable for the loan if the business (borrower) defaults, giving the lender recourse beyond the commercial property securing the loan.
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