{"ok":true,"canonical_url":"https://dealroom.so/glossary/individually-liable","api_url":"https://dealroom.so/api/public/glossary/individually-liable","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":"individually-liable","term":"Individually liable","group":"People and paperwork","definition":"A legal status where an individual is personally responsible for a debt or obligation, regardless of the business's legal structure. This means your personal assets are at risk.","what_it_means":"When you sign an unconditional personal guarantee for an SBA loan, you become individually liable for the full amount. This obligation persists even if the business fails, so understand the potential impact on your personal finances.","url":"https://dealroom.so/glossary/individually-liable","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":"unconditional-personal-guarantee","term":"Unconditional personal guarantee","url":"https://dealroom.so/glossary/unconditional-personal-guarantee"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"}],"related_questions":[{"question":"If I sell my business before the SBA loan is fully repaid, am I still personally liable?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-my-business-before-the-sba-loan-is-fully-repaid-am-i-still-personally-liable"}]},"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 — Individually liable","url":"https://dealroom.so/glossary/individually-liable","source_type":"DealRoom Data"}}