{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-loan","api_url":"https://dealroom.so/api/public/glossary/personal-loan","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-loan","term":"Personal loan","group":"The loan itself","definition":"A personal loan is debt taken out by an individual, not a business. For a business acquisition, your personal loan funds can be part of your equity injection, but must be fully unsecured and not funded by the business itself.","what_it_means":"If you use a personal loan for your equity injection, the SBA requires it to be unsecured and not sourced from the business you're buying. Lenders will scrutinize the source of these funds to ensure they are \"seasoned\" or clearly from a legitimate personal source. This ensures your true equity is at risk in the deal.","url":"https://dealroom.so/glossary/personal-loan","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"home-equity-line-of-credit","term":"Home equity line of credit","url":"https://dealroom.so/glossary/home-equity-line-of-credit"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"related_questions":[{"question":"Why does the SBA mandate personal guaranties for 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/why-does-the-sba-mandate-personal-guaranties-for-7-a-loans"},{"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":"What is the purpose of the personal guaranty requirement for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/what-is-the-purpose-of-the-personal-guaranty-requirement-for-sba-7-a-loans"},{"question":"What constitutes an 'associate' that may require a personal guaranty or affiliation review for 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-an-associate-that-may-require-a-personal-guaranty-or-affiliation-review-f"},{"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 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"}]},"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 loan","url":"https://dealroom.so/glossary/personal-loan","source_type":"DealRoom Data"}}