Avoid PG's (Personal Guarantees) for Limited Partners

[Jonathan Makovsky]

We are hoping to close a small commercial loan ~ $400K with limited [equity] partners in the deal. A number of banks we spoke with want all members with more than 25% interest in the property to hold PG's (Personally Guarantees). Our LP's would not be interested in this structure, is there a way around this?

A few options we thought of:

• 1) Create a separate investment LLC that we are managing members of. (One bank said this would work, another one said it would not.)
• 2) [NOT IDEAL] Have investors use different names (for example, wife, husband, kids, etc.) so that they do not own a 25%+ share.

Thanks in advance for feedback.