{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-guaranty","api_url":"https://dealroom.so/api/public/glossary/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":"personal-guaranty","term":"Personal Guaranty","aka":"Personal Guarantee","group":"People and paperwork","definition":"A promise by you, the business owner, to personally repay the SBA loan if the business defaults. This is a non-negotiable requirement for all owners with 20% or more equity in the borrowing entity.","what_it_means":"The SBA requires a full and unconditional personal guaranty from all owners with a 20% or more stake. This means your personal assets are on the line if the business fails to repay the loan. Understand the gravity of this commitment; it's a core part of the SBA's risk mitigation.","url":"https://dealroom.so/glossary/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-recourse","term":"Personal Recourse","url":"https://dealroom.so/glossary/personal-recourse"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"call-of-the-guaranty","term":"Call of the guaranty","url":"https://dealroom.so/glossary/call-of-the-guaranty"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"}],"related_questions":[{"question":"Does a personal guaranty extend to my personal assets acquired after the loan closing date?","url":"https://dealroom.so/sba-7a/questions/does-a-personal-guaranty-extend-to-my-personal-assets-acquired-after-the-loan-closing-date"},{"question":"What happens if a required personal guarantor lacks sufficient personal assets for an effective guaranty?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-required-personal-guarantor-lacks-sufficient-personal-assets-for-an-effe"},{"question":"What are the personal guaranty requirements for owners and affiliates?","url":"https://dealroom.so/sba-7a/questions/what-are-the-personal-guaranty-requirements-for-owners-and-affiliates"},{"question":"What personal risks do I take with a personal guaranty on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-personal-risks-do-i-take-with-a-personal-guaranty-on-an-sba-7-a-loan"},{"question":"What is a personal guaranty for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-a-personal-guaranty-for-an-sba-7-a-loan"},{"question":"What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"}]},"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 Guaranty","url":"https://dealroom.so/glossary/personal-guaranty","source_type":"DealRoom Data"}}