{"ok":true,"canonical_url":"https://dealroom.so/glossary/limited-personal-guaranty","api_url":"https://dealroom.so/api/public/glossary/limited-personal-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":"limited-personal-guaranty","term":"Limited Personal Guaranty","group":"People and paperwork","definition":"This is a personal promise to repay a debt, but with a cap on the amount or specific conditions that limit your liability. It's less comprehensive than a full personal guarantee.","what_it_means":"While most key principals in an SBA 7(a) loan must provide a full personal guarantee, a limited personal guaranty might be possible for certain minority owners or in specific circumstances, capping their exposure. Always understand the exact terms and limits of any guarantee you sign.","url":"https://dealroom.so/glossary/limited-personal-guaranty","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":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"minority-partner","term":"Minority Partner","url":"https://dealroom.so/glossary/minority-partner"}],"related_questions":[{"question":"Can the personal guaranty be limited for certain passive investors or minority owners?","url":"https://dealroom.so/sba-7a/questions/can-the-personal-guaranty-be-limited-for-certain-passive-investors-or-minority-owners"},{"question":"How does an unlimited personal guaranty differ from a limited one for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-unlimited-personal-guaranty-differ-from-a-limited-one-for-an-sba-7-a-loan"},{"question":"How does the SBA differentiate between a general partner and a limited partner for personal guaranty requirements?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-differentiate-between-a-general-partner-and-a-limited-partner-for-persona"},{"question":"What if my personal credit score is strong (e.g., 720), but my personal financial statement shows limited liquid assets?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-credit-score-is-strong-e-g-720-but-my-personal-financial-statement-sho"},{"question":"Can a business owner's personal assets be used as collateral if business assets are limited?","url":"https://dealroom.so/sba-loans/basics/can-a-business-owner-s-personal-assets-be-used-as-collateral-if-business-assets-are-limite"},{"question":"If business assets are limited, what specific personal assets, besides real estate, might be required as collateral?","url":"https://dealroom.so/sba-7a/questions/if-business-assets-are-limited-what-specific-personal-assets-besides-real-estate-might-be-"}]},"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 — Limited Personal Guaranty","url":"https://dealroom.so/glossary/limited-personal-guaranty","source_type":"DealRoom Data"}}