[caudicus]

One thing to note about bank loans: usually the bank asks that at least some of the credit line is made personally liable to you/someone on your team. It's like the first time you get a credit card and you have a parent/guardian underwrite it since you have no credit history.

The business is like a person, with its own Tax ID and everything (just as we have social security numbers), and when that business has no credit history you may need to use yours to get it started and establish a credit history. When you put some of your own money on the line, the bank feels a little better off since you're risking your own capital along with their capital, and not just their capital.