{"ok":true,"canonical_url":"https://dealroom.so/glossary/unlimited-personal-guaranty","api_url":"https://dealroom.so/api/public/glossary/unlimited-personal-guaranty","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-guaranty","term":"Unlimited Personal Guaranty","group":"People and paperwork","definition":"This is your personal promise to repay the entire SBA loan if the business defaults. It means your personal assets are on the line, not just your equity injection.","what_it_means":"Every owner with 20% or more equity in the borrowing entity, plus certain other key principals, must provide an Unlimited Personal Guaranty for an SBA 7(a) loan. This is non-negotiable and a core tenet of the SBA program. Understand this obligation fully; it's a significant personal financial commitment that extends beyond the business assets.","url":"https://dealroom.so/glossary/unlimited-personal-guaranty","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":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"}],"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":"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":"What are the personal guaranty requirements for owners and affiliates?","url":"https://dealroom.so/sba-7a/questions/what-are-the-personal-guaranty-requirements-for-owners-and-affiliates"},{"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"}]},"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 Guaranty","url":"https://dealroom.so/glossary/unlimited-personal-guaranty","source_type":"DealRoom Data"}}