{"ok":true,"canonical_url":"https://dealroom.so/glossary/guarantor","api_url":"https://dealroom.so/api/public/glossary/guarantor","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":"guarantor","term":"Guarantor","group":"People and paperwork","definition":"A guarantor is someone who promises to repay a loan if the primary borrower defaults. For an SBA loan, all owners with 20% or more equity are typically required to be guarantors.","what_it_means":"As a buyer, if you own 20% or more of the acquired business, you will be a guarantor, providing a personal guarantee. This means your personal assets are at risk if the business loan defaults. Understand the full extent of this commitment.","url":"https://dealroom.so/glossary/guarantor","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":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"What happens if a guarantor moves out of the country during the loan term?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-guarantor-moves-out-of-the-country-during-the-loan-term"},{"question":"What happens if a required personal guarantor lacks sufficient personal assets for an effective guaranty?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-personal-guarantor-lacks-sufficient-personal-assets-for-an-effe"},{"question":"What if the partner I'm buying out is also a guarantor on existing business debt?","url":"https://dealroom.so/sba-7a/questions/what-if-the-partner-i-m-buying-out-is-also-a-guarantor-on-existing-business-debt"},{"question":"When is an SBA Form 912 (Statement of Personal History) required for a non-owner guarantor?","url":"https://dealroom.so/for-lenders/questions/when-is-an-sba-form-912-statement-of-personal-history-required-for-a-non-owner-guarantor"},{"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 criteria justify a lender waiving a lien on readily marketable personal assets from a guarantor?","url":"https://dealroom.so/for-lenders/questions/what-criteria-justify-a-lender-waiving-a-lien-on-readily-marketable-personal-assets-from-a"}]},"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 — Guarantor","url":"https://dealroom.so/glossary/guarantor","source_type":"DealRoom Data"}}