{"ok":true,"canonical_url":"https://dealroom.so/glossary/guaranty","api_url":"https://dealroom.so/api/public/glossary/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":"guaranty","term":"Guaranty","aka":"guarantee","group":"The loan itself","definition":"The SBA's promise to cover 75–85% of the bank's loss if you default. It protects the bank. You still owe the full loan.","what_it_means":"The SBA guaranty is what makes the whole program work: the bank takes the credit risk on paper, but the government absorbs most of the downside if you can't pay. The guaranty percentage is 85% on loans up to $150K and 75% above that. As a buyer this means the bank is underwriting you knowing they're partially insured — but a default still triggers the SBA's recovery process against you, your business assets, and your personal guarantee, so the protection runs one direction.","url":"https://dealroom.so/glossary/guaranty","official_sources":[{"slug":"terms-conditions-eligibility","title":"7(a) Loan Program — Terms, Conditions, and Eligibility","official_url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility","official_label":"View on SBA.gov","authority_tier":5,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/terms-conditions-eligibility"},{"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":"guaranty-fee","term":"Guaranty fee","url":"https://dealroom.so/glossary/guaranty-fee"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"}],"related_questions":[{"question":"What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-lender-s-failure-to-obtain-a-required-personal-guaranty-have-on-a-guara"},{"question":"What is the impact on the SBA guaranty if a lender failed to obtain a required personal guaranty from a principal?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-on-the-sba-guaranty-if-a-lender-failed-to-obtain-a-required-personal-gu"},{"question":"What impact does a lender's failure to obtain a required personal guaranty from a principal have on a 7(a) guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-lender-s-failure-to-obtain-a-required-personal-guaranty-from-a-principa"},{"question":"What does 'SBA guaranty' mean for my business loan application?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-guaranty-mean-for-my-business-loan-application"},{"question":"What is the purpose of the SBA's loan guaranty?","url":"https://dealroom.so/sba-loans/basics/what-is-the-purpose-of-the-sba-s-loan-guaranty"},{"question":"What are the personal guaranty requirements for owners and affiliates?","url":"https://dealroom.so/sba-7a/questions/what-are-the-personal-guaranty-requirements-for-owners-and-affiliates"}]},"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 — Guaranty","url":"https://dealroom.so/glossary/guaranty","source_type":"DealRoom Data"}}