{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-guarantee","api_url":"https://dealroom.so/api/public/glossary/personal-guarantee","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":"personal-guarantee","term":"Personal guarantee","group":"Doing the deal","definition":"Your signed promise to repay personally if the business can't. Required from every owner of 20% or more. No exceptions.","what_it_means":"The personal guarantee is the SBA's non-negotiable condition for every owner holding 20% or more: you pledge your personal assets — home equity, savings, investments — behind the loan. If the business can't pay, the lender collects from the business first, then from you personally. Spouses may be required to co-sign if they hold substantial personal assets. There is no carve-out for the personal guarantee on SBA 7(a) loans, full stop.","url":"https://dealroom.so/glossary/personal-guarantee","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"related_questions":[{"question":"What is the minimum ownership percentage that requires a personal guarantee?","url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-ownership-percentage-that-requires-a-personal-guarantee"},{"question":"Is a personal guarantee required even if my business has lots of collateral?","url":"https://dealroom.so/sba-loans/basics/is-a-personal-guarantee-required-even-if-my-business-has-lots-of-collateral"},{"question":"What is a 'personal guarantee' and why is it required for SBA loans?","url":"https://dealroom.so/sba-loans/basics/what-is-a-personal-guarantee-and-why-is-it-required-for-sba-loans"},{"question":"Is a spouse's personal guarantee always required if they have significant shared assets?","url":"https://dealroom.so/sba-7a/questions/is-a-spouse-s-personal-guarantee-always-required-if-they-have-significant-shared-assets"},{"question":"How does a partner buyout impact the personal guarantee requirements for the remaining owner?","url":"https://dealroom.so/sba-7a/questions/how-does-a-partner-buyout-impact-the-personal-guarantee-requirements-for-the-remaining-own"},{"question":"What is the meaning of a 'personal guarantee' on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-meaning-of-a-personal-guarantee-on-an-sba-7-a-loan"}]},"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 — Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee","source_type":"DealRoom Data"}}