How do lenders structure loans to GPs?

teddythebear's picture
Rank: Neanderthal | 2,010

So I have been curious to know how loans are structured to GPs. The reason I ask is that we have a couple banks we do business with and they say they structure their deals where any owner with at least 20% or more ownership of the LLC must provide a guarantee. Now this confuses me because in a GP/LP structure, the LP provides pretty much most of the money but they dont put up any guarantee as thats the GP's job. So when the GPs go to a bank do they just tell them they want to be on the hook completely and the bank structures it that way?