United States v. Outriggers, Inc., J. O. Bowling and David C. Elliott

The United States brought this action against seven individuals who were signatories to a Small Business Administration Standard Form Guaranty Agreement. 1 The undisputed facts may be simply stated.

Outriggers borrowed $39,000 from the SBA. “In order to induce” SBA to make the loan and to provide collateral for the loan, seven individuals executed a Guaranty Agreement. Napoleon Baker had also signed the agreement. His name was deleted prior to SBA’s acceptance. Defendants Bowling and Elliott signed the agreement prior to the deletion. The guaranty agreement (SBA Form 148 (8-67)) provides in…