{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-net-worth","api_url":"https://dealroom.so/api/public/glossary/personal-net-worth","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-net-worth","term":"Personal Net Worth","group":"Your money in the deal","definition":"Your personal net worth is the total value of your assets minus your liabilities. Lenders assess it to determine your financial strength and capacity to withstand business risks, impacting your eligibility for an SBA loan.","what_it_means":"For an SBA 7(a) loan, if your personal net worth (excluding your primary residence and retirement accounts) is $500,000 or more, you generally must inject 25% equity into the deal. This is a critical factor in the lender's credit decision and a key component of your personal financial statement.","url":"https://dealroom.so/glossary/personal-net-worth","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":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"}],"related_questions":[{"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":"What if an owner's personal net worth is negative; are they still required to provide a personal guaranty?","url":"https://dealroom.so/sba-7a/questions/what-if-an-owner-s-personal-net-worth-is-negative-are-they-still-required-to-provide-a-per"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"},{"question":"What if my business has a negative net worth? Can I still get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-has-a-negative-net-worth-can-i-still-get-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 Net Worth","url":"https://dealroom.so/glossary/personal-net-worth","source_type":"DealRoom Data"}}