{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-recourse","api_url":"https://dealroom.so/api/public/glossary/personal-recourse","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-recourse","term":"Personal Recourse","group":"People and paperwork","definition":"This refers to the lender's right to pursue your personal assets to recover an unpaid loan amount, typically enabled by a personal guaranty. It means you are personally responsible for the debt, not just the business.","what_it_means":"When you provide a personal guaranty, you grant the lender personal recourse. If the business defaults and the collateral isn't enough, the lender can come after your personal assets, like your home or savings. This is why understanding your personal liability is critical before signing.","url":"https://dealroom.so/glossary/personal-recourse","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-guaranty","term":"Personal Guaranty","url":"https://dealroom.so/glossary/personal-guaranty"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"call-of-the-guaranty","term":"Call of the guaranty","url":"https://dealroom.so/glossary/call-of-the-guaranty"},{"slug":"personal-judgment","term":"Personal judgment","url":"https://dealroom.so/glossary/personal-judgment"}],"related_questions":[{"question":"If the SBA issues a denial of the 7(a) guaranty, what recourse or action can the lender take?","url":"https://dealroom.so/for-lenders/questions/if-the-sba-issues-a-denial-of-the-7-a-guaranty-what-recourse-or-action-can-the-lender-take"},{"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"}]},"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 Recourse","url":"https://dealroom.so/glossary/personal-recourse","source_type":"DealRoom Data"}}