{"ok":true,"canonical_url":"https://dealroom.so/glossary/key-personnel","api_url":"https://dealroom.so/api/public/glossary/key-personnel","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":"key-personnel","term":"Key personnel","group":"People and paperwork","definition":"Individuals whose skills and contributions are critical to the success and operation of the business. For an SBA loan, these are typically the owner-operators and any essential employees.","what_it_means":"The SBA requires that key personnel, including all owner-operators with 20% or more ownership, personally guarantee the loan. Lenders also assess the continuity plan for the business if a key person leaves or becomes incapacitated, often requiring \"Key man insurance\" to mitigate this risk.","url":"https://dealroom.so/glossary/key-personnel","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"}],"related":[{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"co-borrower","term":"Co-borrower","url":"https://dealroom.so/glossary/co-borrower"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"}],"related_questions":[{"question":"Who should a business identify and insure as a key person?","url":"https://dealroom.so/sba-7a/questions/who-should-a-business-identify-and-insure-as-a-key-person"},{"question":"When is life insurance on key principals a mandatory loan condition?","url":"https://dealroom.so/for-lenders/questions/when-is-life-insurance-on-key-principals-a-mandatory-loan-condition"},{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"How is life insurance structured when a business has multiple key owners?","url":"https://dealroom.so/sba-7a/questions/how-is-life-insurance-structured-when-a-business-has-multiple-key-owners"},{"question":"What is the typical amount of key-person life insurance coverage needed?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-amount-of-key-person-life-insurance-coverage-needed"},{"question":"Does the SBA require life insurance on key people in the business?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-require-life-insurance-on-key-people-in-the-business"}]},"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 — Key personnel","url":"https://dealroom.so/glossary/key-personnel","source_type":"DealRoom Data"}}