What is the responsibility of the member paid a 3% loan guarantee fee?

[Chris Blackburn]

Any real-life experience of understanding if a member was paid a 3% loan guarantee fee, (on top of a similar 70% fee from USDA) what responsibilities that paid member may have in with the project or loan?  (vague, I know).

I know they are being compensated for their liquidity and responsibility for covering that amount, but are they responsible for making the payment?

In my projects, if I am the guarantor- even if I was not paid a loan guarantee fee, the project ALWAYS gets funded by me if there are shortfalls.    As an investor/member in another project, it appears the guarantor w/ a loan fee paid is not addressing this the same way our team would.   

[David Ramirez]

Hey @Chris Blackburn

From what I know, if someone gets paid to guarantee a loan, they have to make sure that the loan gets paid back if something goes wrong. They are responsible for covering the cost if the loan can't be paid back. But they usually don't have to actually pay the loan themselves.