In this episode of the M&A Launchpad Podcast, hosts Feras Moussa and Ben Suttles sit down with Jason Hunt, founder and CEO of Ink Insurance, to unpack one of the biggest hidden risks in small business acquisitions: the personal guarantee. Jason's path here started in restructuring during the 2008 financial crisis, continued through buying and selling his own education company, a decade in tech at Reverb, Amazon, and QuickNode, and finally hit a wall in 2024 when he went to buy another business and got stopped cold by the size of the PG he'd have to sign. With no personal guarantee insurance product on the market, he built one. The conversation covers how SBA 7(a) loans work without much business collateral, why that makes the personal guarantee so much larger and riskier for buyers of cash-flow-based businesses like professional services and trades, and how Ink Insurance's coverage, claims process, and pricing actually work. Jason also shares how his company (which recently raised $2.2 million) is backed by an A-rated, AM Best–rated carrier, and how the product is starting to solve a newer problem: sellers who roll equity and get stuck personally guaranteeing a loan on a business they no longer control. In this episode, we discuss: Why SBA loans require a personal guarantee when a business doesn't have $2M+ in EBITDA or enough hard collateral, and why that hits cash-flow acquisitions (professional services, trades) hardest How Ink Insurance's coverage works: targeting roughly 80% of the loan amount, the claims process after a default and business liquidation, and why full coverage (100%) can actually reduce an owner's incentive to fight for the business Pricing: about 2% of the coverage amount per year, based on risk scoring from SBA industry/location default data, personal credit, and deal metrics like DSCR Deal sizing: Ink Insurance covers SBA 7(a) loans from $350,000 up to $5 million, with plans to expand into 504 loans and eventually non-SBA products like real estate Using PG insurance as a negotiating chip in a deal (similar to reps and warranties insurance) and as a solution for sellers now required to personally guarantee rolled equity for two years after close Being backed by an A-rated, AM Best–rated carrier with a $5–6 billion balance sheet, Ink Insurance's role as the MGA, and the company's recent $2.2 million capital raise What happens to buyers who previously defaulted and went through bankruptcy, and why paying off a prior SBA loan in full (even after default) keeps the door open for future financing Guest Contact Information Jason Hunt Founder & CEO, Ink Insurance LinkedIn: https://www.linkedin.com/in/jasonchrishunt/ Website: https://inkinsurance.com Apply: https://apply.incinsurance.com Additional Resources Thinking about buying a business? Connect with the Equity Launchpad team to learn more about acquisition entrepreneurship and upcoming opportunities. Contact Feras Moussa and Ben Suttles: info@equity-launchpad.com Explore more: https://www.equity-launchpad.com About The M&A Launchpad: The M&A Launchpad provides insights into acquiring, investing in, and selling profitable businesses in the lower to middle market. Whether you are a business owner, investor, or aspiring entrepreneur, we will provide you with the knowledge, guidance, and capital to navigate the world of mergers and acquisitions. The M&A Launchpad presents a series of weekly podcast episodes and hosts an annual M&A Launchpad Conference tailored to the M&A community. Connect with M&A Launchpad: 🎧 Podcast on Spotify: https://open.spotify.com/show/0mW6i4ooujqC7eOPWmguU7 🎧 Podcast on Apple: https://podcasts.apple.com/us/podcast/m-a-launchpad/id1740382586 🎟️ Attend Upcoming M&A Launchpad Conference: http://malaunchpad.com/
