{"ok":true,"canonical_url":"https://dealroom.so/glossary/full-recourse","api_url":"https://dealroom.so/api/public/glossary/full-recourse","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":"full-recourse","term":"Full Recourse","group":"The loan itself","definition":"This means the lender can pursue all personal assets of the guarantor(s) to recover the debt if the business defaults, not just the pledged collateral. It is a standard feature of SBA 7(a) loans.","what_it_means":"For an SBA 7(a) loan, all owners with 20% or more equity are typically required to provide a full personal guarantee. This makes the loan 'full recourse,' meaning if the business fails and the collateral isn't enough, the lender can pursue your personal assets (e.g., home equity, savings) to satisfy the debt. Understand this significant personal risk.","url":"https://dealroom.so/glossary/full-recourse","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"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"If the SBA issues a denial of the 7(a) guaranty, what recourse or action can the lender take?","url":"https://dealroom.so/for-lenders/questions/if-the-sba-issues-a-denial-of-the-7-a-guaranty-what-recourse-or-action-can-the-lender-take"},{"question":"What happens if business assets are insufficient for full loan collateral?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-business-assets-are-insufficient-for-full-loan-collateral"},{"question":"What is the required duration of a full standby seller note?","url":"https://dealroom.so/sba-7a/questions/what-is-the-required-duration-of-a-full-standby-seller-note"},{"question":"What are the specific conditions for an acceptable full standby agreement?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-conditions-for-an-acceptable-full-standby-agreement"},{"question":"Can a full standby seller note accrue interest during the standby period?","url":"https://dealroom.so/for-lenders/questions/can-a-full-standby-seller-note-accrue-interest-during-the-standby-period"},{"question":"Under what conditions can a seller note on full standby be repaid early?","url":"https://dealroom.so/sba-7a/questions/under-what-conditions-can-a-seller-note-on-full-standby-be-repaid-early"}]},"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 — Full Recourse","url":"https://dealroom.so/glossary/full-recourse","source_type":"DealRoom Data"}}