{"ok":true,"canonical_url":"https://dealroom.so/glossary/joint-and-several-liability","api_url":"https://dealroom.so/api/public/glossary/joint-and-several-liability","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":"joint-and-several-liability","term":"Joint and Several Liability","group":"People and paperwork","definition":"A legal term meaning each party to an agreement is individually responsible for the entire obligation, and collectively responsible for the entire obligation. All guarantors on an SBA loan have this.","what_it_means":"If you have multiple guarantors on an SBA 7(a) loan (e.g., you and a business partner), you will all be subject to joint and several liability. This means the lender can pursue any single guarantor for the full amount of the outstanding debt, not just their \"share,\" if the loan defaults. Understand this commitment fully.","url":"https://dealroom.so/glossary/joint-and-several-liability","official_sources":[{"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"},{"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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"co-borrower","term":"Co-borrower","url":"https://dealroom.so/glossary/co-borrower"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"If multiple owners each guarantee the loan, are their liabilities typically joint and several or individual?","url":"https://dealroom.so/sba-7a/questions/if-multiple-owners-each-guarantee-the-loan-are-their-liabilities-typically-joint-and-sever"},{"question":"Does my business need to show consistent revenue over several years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-show-consistent-revenue-over-several-years"},{"question":"What if my personal credit report shows a minor collection from several years ago?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-report-shows-a-minor-collection-from-several-years-ago"},{"question":"Can my spouse's W2 income savings, held in a joint account, count towards the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-my-spouse-s-w2-income-savings-held-in-a-joint-account-count-towards-the-equity-injecti"},{"question":"How does the SBA view an equity injection derived from a personal gift held in a joint account?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-view-an-equity-injection-derived-from-a-personal-gift-held-in-a-joint-acc"},{"question":"What documentation verifies equity injection funds deposited as cash into a borrower's personal account over several months?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-equity-injection-funds-deposited-as-cash-into-a-borrower-s-per"}]},"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 — Joint and Several Liability","url":"https://dealroom.so/glossary/joint-and-several-liability","source_type":"DealRoom Data"}}