{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-the-value-of-a-non-owner-s-personal-guarantee-on-the-sba-loan-count-toward-my-equity-i","api_url":"https://dealroom.so/api/public/questions/can-the-value-of-a-non-owner-s-personal-guarantee-on-the-sba-loan-count-toward-my-equity-i","question":"Can the value of a non-owner's personal guarantee on the SBA loan count toward my equity injection?","topic":"Guaranty as Equity","audience":"borrower","bot_mode":"buyer","short_answer":"No, the value of a non-owner's personal guarantee on the SBA loan cannot count towards your equity injection.","rule":"Equity injection must be a direct capital contribution to the business from the borrower or eligible third parties. A personal guarantee, while crucial for the loan's security, is a promise to pay and not a direct infusion of capital or an asset that adds to the business's net worth.","example":"If your wealthy uncle personally guarantees your $500,000 SBA loan, his guarantee is valuable collateral but does not reduce your required 10% ($50,000) cash equity injection.","what_lenders_check":"Lenders understand the distinction between collateral/guaranties and equity. They ensure that the borrower's equity contribution meets SBA requirements as true capital and is not conflated with loan security.","required_facts":["Personal guarantee","Equity definition","Capital contribution","Loan security"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"SBA loan guarantee","url":"https://dealroom.so/glossary/sba-loan-guarantee"},{"term":"Repair of the guarantee","url":"https://dealroom.so/glossary/repair-of-the-guarantee"},{"term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"term":"SBA guarantee","url":"https://dealroom.so/glossary/sba-guarantee"},{"term":"Repair or Denial of the SBA Guarantee","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guarantee"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-the-value-of-a-non-owner-s-personal-guarantee-on-the-sba-loan-count-toward-my-equity-i","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}