{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-liability","api_url":"https://dealroom.so/api/public/glossary/personal-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":"personal-liability","term":"Personal liability","group":"People and paperwork","definition":"The legal obligation of an individual for business debts and actions, meaning their personal assets can be seized to satisfy those obligations. This is a primary concern for business owners.","what_it_means":"As an SBA 7(a) borrower, you'll sign a Personal Guarantee, making you personally liable for the loan. Beyond the loan, your choice of entity (LLC, Corporation) can limit other business liabilities to the business's assets. Understand where your personal assets are exposed and ensure the business structure aligns with your risk tolerance.","url":"https://dealroom.so/glossary/personal-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":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"related":[{"slug":"unlimited-liability","term":"Unlimited liability","url":"https://dealroom.so/glossary/unlimited-liability"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"}],"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":"Can personal funds borrowed from a credit union against personal assets count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-personal-funds-borrowed-from-a-credit-union-against-personal-assets-count-towards-my-e"},{"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 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"},{"question":"Can funds from a personal line of credit secured by non-personal real estate be equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-line-of-credit-secured-by-non-personal-real-estate-be-equity-inj"}]},"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 liability","url":"https://dealroom.so/glossary/personal-liability","source_type":"DealRoom Data"}}