{"ok":true,"canonical_url":"https://dealroom.so/glossary/full-release-of-personal-guaranty","api_url":"https://dealroom.so/api/public/glossary/full-release-of-personal-guaranty","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-release-of-personal-guaranty","term":"Full Release of Personal Guaranty","group":"Doing the deal","definition":"This is a document that legally frees a person from their personal liability on a loan. For the seller, it's crucial to get this from their old lender when you take over the business.","what_it_means":"When acquiring a business with existing debt that you are not assuming, the seller needs to obtain a full release of their personal guarantees from their existing lenders. Your lender will require proof of this release to ensure a clean transfer of the business and its assets, avoiding lingering liabilities.","url":"https://dealroom.so/glossary/full-release-of-personal-guaranty","official_sources":[],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"payoff-letter","term":"Payoff Letter","url":"https://dealroom.so/glossary/payoff-letter"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"}],"related_questions":[{"question":"What is the process for a lender to request a full release of personal guaranty from a principal for an SBA 7(a) loan post-closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-request-a-full-release-of-personal-guaranty-from-a-pri"},{"question":"Do all individuals with an ownership stake of 20% or more need to provide a full personal guaranty?","url":"https://dealroom.so/sba-7a/questions/do-all-individuals-with-an-ownership-stake-of-20-or-more-need-to-provide-a-full-personal-g"},{"question":"If I own 15% of the acquiring business, am I still required to provide a full personal guaranty for the SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/if-i-own-15-of-the-acquiring-business-am-i-still-required-to-provide-a-full-personal-guara"},{"question":"Can a lender release a personal guarantor without SBA approval if collateral fully covers the loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-release-a-personal-guarantor-without-sba-approval-if-collateral-fully-covers-"},{"question":"What specific lender actions or omissions can lead to a repair of the SBA guaranty, short of a full denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-actions-or-omissions-can-lead-to-a-repair-of-the-sba-guaranty-short-o"},{"question":"Is it possible to request a release for a personal guarantor before the SBA loan is fully repaid?","url":"https://dealroom.so/sba-7a/questions/is-it-possible-to-request-a-release-for-a-personal-guarantor-before-the-sba-loan-is-fully-"}]},"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 Release of Personal Guaranty","url":"https://dealroom.so/glossary/full-release-of-personal-guaranty","source_type":"DealRoom Data"}}