{"ok":true,"canonical_url":"https://dealroom.so/glossary/unconditional-personal-guarantee","api_url":"https://dealroom.so/api/public/glossary/unconditional-personal-guarantee","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":"unconditional-personal-guarantee","term":"Unconditional personal guarantee","aka":"Full personal guarantee","group":"People and paperwork","definition":"A binding promise by an individual to repay a business loan if the business defaults, without any conditions or limitations. The SBA requires this from all 20%+ owners.","what_it_means":"The SBA requires all owners with 20% or more equity in the borrowing entity to sign an unconditional personal guarantee. This means your personal assets are on the line if the business fails to repay the loan. Understand this full recourse before signing.","url":"https://dealroom.so/glossary/unconditional-personal-guarantee","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":"individually-liable","term":"Individually liable","url":"https://dealroom.so/glossary/individually-liable"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"}],"related_questions":[{"question":"What is the minimum ownership percentage that requires a personal guarantee?","url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-ownership-percentage-that-requires-a-personal-guarantee"},{"question":"Is a personal guarantee required even if my business has lots of collateral?","url":"https://dealroom.so/sba-loans/basics/is-a-personal-guarantee-required-even-if-my-business-has-lots-of-collateral"},{"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":"Is a spouse's personal guarantee always required if they have significant shared assets?","url":"https://dealroom.so/sba-7a/questions/is-a-spouse-s-personal-guarantee-always-required-if-they-have-significant-shared-assets"},{"question":"How does a partner buyout impact the personal guarantee requirements for the remaining owner?","url":"https://dealroom.so/sba-7a/questions/how-does-a-partner-buyout-impact-the-personal-guarantee-requirements-for-the-remaining-own"},{"question":"What is the meaning of a 'personal guarantee' on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-meaning-of-a-personal-guarantee-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 — Unconditional personal guarantee","url":"https://dealroom.so/glossary/unconditional-personal-guarantee","source_type":"DealRoom Data"}}