Frequently asked questions.

  • Business owners signing qualifying business loans backed by the Small Business Administration with personal guarantees are eligible for PGI coverage. Eligibility requirements include:

    • Personal guarantee requirement from the lender

    • Loan amount within our coverage limits

    • Business located in states where coverage is available

    • Subject to underwriting approval

  • PGI pays out after verified corporate bankruptcy, with documentation of loss and personal guarantee enforcement. The specific conditions include:

    • Business default on the loan

    • Completion of corporate bankruptcy proceedings

    • Verification of business failure and asset liquidation

    • Documentation of personal guarantee enforcement by the lender

    • Submission of a complete claim with required documentation

    Important: PGI does not prevent loan enforcement or provide immediate protection during default proceedings.

  • No — PGI provides partial coverage, typically 50% of the guaranteed amount. This coverage is designed to:

    • Provide meaningful financial protection without replacing sound business practices

    • Keep premiums affordable for small business owners

    • Maintain appropriate risk-sharing between all parties

    • Ensure sustainable insurance operations

    The exact coverage percentage depends on factors such as business type, loan amount, and underwriting assessment. The coverage will ultimately depend on the loan balance when the Personal Guarantee is called.

  • Premiums start around 1.5–3.5% of the guaranteed amount annually. The exact cost depends on several factors:

    • Business Risk Profile: Industry, financial strength, and operating history

    • Loan Terms: Amount, duration, and structure of the personal guarantee

    • Coverage Level: Percentage of guarantee amount covered

    • Geographic Location: State-specific risk factors and regulations

    Example Pricing

    On a $1 million loan, PGI will provide $500,000 coverage. A 2% annual premium = $10,000/year

    *Actual pricing is subject to underwriting and may vary based on risk factors

  • The PGI application process typically takes 5-10 business days from submission to approval, depending on:

    • Completeness of application and supporting documents

    • Complexity of the business and loan structure

    • Underwriting review requirements

    • Any additional information requests

    We work closely with you and your lender to ensure a smooth process that doesn't delay your loan closing.

  • PGI is currently under development and is expected to be available in April 2026. Initial states of availability include:

    1. Alabama

    2. Arizona

    3. Arkansas

    4. Colorado

    5. Delaware

    6. Georgia

    7. Illinois

    8. Indiana

    9. Louisiana

    10. Maine

    11. Massachusetts

    12. Michigan

    13. Minnesota

    14. Mississippi

    15. Missouri

    16. Nevada

    17. New Jersey

    18. North Carolina

    19. Ohio

    20. Pennsylvania

    21. South Carolina

    22. Tennessee

    23. Texas

    24. Utah

    25. Virginia

    26. Washington

    27. Wyoming

  • Yes, PGI policies can typically be cancelled with proper notice, subject to policy terms. However, consider:

    • Your personal guarantee remains in effect even if PGI is cancelled

    • Coverage cannot be reinstated retroactively if business problems arise

    We recommend discussing any cancellation considerations with your insurance advisor and lender.

  • Key documents include: your SBA loan agreement, personal guarantee (SBA Form 148), last two years of personal tax returns, business P&L and balance sheet, personal financial statement, and business tax returns. We'll guide you through the full requirements.

  • PGI policies are 12-month terms. At renewal, we'll request updated business financials and personal financial information. Premiums may be adjusted based on changes in risk profile. We may non-renew based on factors like business performance or macroeconomic conditions.