{"ok":true,"canonical_url":"https://dealroom.so/glossary/unlimited-personal-guarantee","api_url":"https://dealroom.so/api/public/glossary/unlimited-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":"unlimited-personal-guarantee","term":"Unlimited personal guarantee","group":"Your money in the deal","definition":"A legal promise by you, the borrower, to personally repay the entire loan amount if the business defaults. This puts your personal assets at risk.","what_it_means":"All owners of 20% or more in the acquiring entity are required to provide an unlimited personal guarantee for an SBA 7(a) loan. This means your personal assets, beyond your initial equity injection, are on the line. Understand this full recourse obligation before committing to the deal.","url":"https://dealroom.so/glossary/unlimited-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":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"}],"related_questions":[{"question":"Do all individuals with 20% or more ownership always provide an unlimited personal guaranty?","url":"https://dealroom.so/sba-7a/questions/do-all-individuals-with-20-or-more-ownership-always-provide-an-unlimited-personal-guaranty"},{"question":"How does an unlimited personal guaranty differ from a limited one for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-unlimited-personal-guaranty-differ-from-a-limited-one-for-an-sba-7-a-loan"},{"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"}]},"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 — Unlimited personal guarantee","url":"https://dealroom.so/glossary/unlimited-personal-guarantee","source_type":"DealRoom Data"}}