{"ok":true,"canonical_url":"https://dealroom.so/glossary/primary-recourse","api_url":"https://dealroom.so/api/public/glossary/primary-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":"primary-recourse","term":"Primary recourse","group":"The loan itself","definition":"This refers to the main source a lender can pursue for repayment if the borrower defaults. For an SBA loan, this is the business itself and the guarantors.","what_it_means":"The business's cash flow is the primary recourse for the lender. If that fails, they'll turn to the collateral pledged and then to the personal guarantees of all owners with 20% or more stake. Understand this chain of responsibility and your personal exposure before closing.","url":"https://dealroom.so/glossary/primary-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":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"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":"What is the primary purpose of SBA Form 1919 for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-sba-form-1919-for-eligibility"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp"},{"question":"What is the primary purpose of SBA Form 1919, 'Borrower Information Form'?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-1919-borrower-information-form"},{"question":"What is the primary goal of the SBA 7(a) loan program?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-goal-of-the-sba-7-a-loan-program"},{"question":"What are the primary fees charged on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-primary-fees-charged-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 — Primary recourse","url":"https://dealroom.so/glossary/primary-recourse","source_type":"DealRoom Data"}}