SBA Regulations require the Borrower to have reasonable experience in the industry in which he is going to guarantee the loan.
The standard, SBA Lending Industry, definition of experience is a minimum of one year in the industry with General (overall) Management control or ownership in the industry for one (1) year. And, depending on the experience of the Borrower, there is a possibility that the Borrower can use transferable skills to so qualify (as long as the experience is overall management of the business he is in).
What if you do not have this experience as defined above – and as stated in this question?
Answer: You find another person with the requisite experience and bring him into the new company as a 5% (or more) owner of the company. Depending on the “partnership” negotiations, you as the money partner can negotiate a buy out of this partner after a minimum of one (1) but better two (2) years.
If the Experience “Partner” had to guarantee the SBA Loan, then you will need to refinance the SBA Loan to release him from this obligation.
For more information you can go to my company.