{"ok":true,"canonical_url":"https://dealroom.so/glossary/personally-liable","api_url":"https://dealroom.so/api/public/glossary/personally-liable","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":"personally-liable","term":"Personally Liable","aka":"Personal Guarantee","group":"People and paperwork","definition":"Being personally liable means you are individually responsible for repaying a business loan if the business cannot. This is a standard requirement for all 20%+ owners of an SBA 7(a) loan.","what_it_means":"The SBA requires all owners with 20% or more equity in the borrowing entity to provide an unlimited personal guarantee. This means your personal assets are on the hook if the business defaults. Understand the implications before signing, as it binds you directly to the loan repayment.","url":"https://dealroom.so/glossary/personally-liable","official_sources":[{"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"},{"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"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"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":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"question":"If I sell my business before the SBA loan is fully repaid, am I still personally liable?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-my-business-before-the-sba-loan-is-fully-repaid-am-i-still-personally-liable"},{"question":"Who must personally guarantee an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/who-must-personally-guarantee-an-sba-7-a-loan"},{"question":"Are non-owner spouses always required to personally guarantee SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-non-owner-spouses-always-required-to-personally-guarantee-sba-loans"},{"question":"What if the business property is owned personally by the seller?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-property-is-owned-personally-by-the-seller"},{"question":"Will I always need to personally guarantee an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/will-i-always-need-to-personally-guarantee-an-sba-7-a-loan"},{"question":"Why do business owners need to personally guarantee SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/why-do-business-owners-need-to-personally-guarantee-sba-7-a-loans"}]},"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 — Personally Liable","url":"https://dealroom.so/glossary/personally-liable","source_type":"DealRoom Data"}}