Re: Reg B- Commercial Loans


While it is permissible to obtain evidence of intent to be a joint applicant from a guarantor, it is not necessary. As noted in the original question, the term applicant includes guarantors. But Comment 7(d)(1)2 states, “The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.” Generally a guarantor does not apply contemporaneously with the applicant, and therefore would not be a joint applicant.