Personal Guaranty on Commercial Loan

[Dirghayu Desai]

Can someone explain how personal guaranty works on a commercial investment? LTV is: 70/30

6 partners and each is ~16% owner

Do all partners have to sign a personal guaranty (PG)?

If we sign a PG and the business can't meet its debt obligations what steps take place? How does the lender enforce the PG? What amount will the lender ask for?

Would the lender come after the partners for the whole amount of the remaining loan..i.e. whatever is left on the $4.2M or are the partners only responsible for the delta between what the lender recovers from sale of hotel and what's left on the loan?