{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrower","api_url":"https://dealroom.so/api/public/glossary/borrower","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"borrower","term":"Borrower","group":"People and paperwork","definition":"The individual or entity legally obligated to repay the loan. In an SBA acquisition, this is typically the acquiring business entity.","what_it_means":"As the buyer, your new business entity will be the primary borrower on the SBA 7(a) loan. You, as the owner, will also provide a 'personal guarantee.' Understand the distinction between the business's liability as borrower and your personal liability as guarantor.","url":"https://dealroom.so/glossary/borrower","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"co-borrower","term":"Co-borrower","url":"https://dealroom.so/glossary/co-borrower"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"}],"related_questions":[{"question":"How are SBA 7(a) loan interest rates determined for borrowers?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-7-a-loan-interest-rates-determined-for-borrowers"},{"question":"What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-needed-to-verify-a-borrower-s-equity-injection-when-it-comes-from-an"},{"question":"What does 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"What fees do borrowers pay directly to the SBA for a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-fees-do-borrowers-pay-directly-to-the-sba-for-a-7-a-loan"},{"question":"What does the 'SBA guarantee' actually mean for me, the borrower?","url":"https://dealroom.so/sba-loans/basics/what-does-the-sba-guarantee-actually-mean-for-me-the-borrower"},{"question":"How does the SBA guarantee truly benefit me as the borrower?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-guarantee-truly-benefit-me-as-the-borrower"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Borrower","url":"https://dealroom.so/glossary/borrower","source_type":"DealRoom Data"}}