{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-differentiate-between-a-general-partner-and-a-limited-partner-for-persona","api_url":"https://dealroom.so/api/public/questions/how-does-the-sba-differentiate-between-a-general-partner-and-a-limited-partner-for-persona","question":"How does the SBA differentiate between a general partner and a limited partner for personal guaranty requirements?","topic":"Affiliation & size","audience":"lender","bot_mode":"lender","short_answer":"For personal guaranty requirements, general partners are always required to guarantee a 7(a) loan due to their unlimited liability, while limited partners are generally only required if they hold 20% or more ownership and are able to guarantee.","rule":"SOP 50 10 mandates that all general partners of a partnership must personally guarantee the loan, regardless of their ownership percentage, due to their unlimited liability. Limited partners, similar to shareholders in a corporation, are subject to the 20% ownership threshold for personal guaranty requirements, provided it is feasible.","example":"A partnership has a General Partner (10% ownership) and a Limited Partner (90% ownership). The General Partner must provide a personal guaranty, and the Limited Partner must also provide one due to exceeding the 20% ownership threshold.","what_lenders_check":"Lenders must correctly identify the legal structure and partner types to apply the appropriate guaranty requirements. Incorrectly applying or waiving guaranties can jeopardize the SBA guaranty.","required_facts":["General partner","Limited partner","Unlimited liability","20% ownership","Guaranty requirement","Partnership structure"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","SBA Form 1919 - Borrower Information Form"],"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"},{"title":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"}],"related_questions":[{"question":"When does a contractual relationship between two businesses trigger affiliation for size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-contractual-relationship-between-two-businesses-trigger-affiliation-for-size-s"},{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"question":"What are the size standard requirements for a business applying for a 7(a) loan if it operates internationally?","url":"https://dealroom.so/for-lenders/questions/what-are-the-size-standard-requirements-for-a-business-applying-for-a-7-a-loan-if-it-opera"},{"question":"What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?","url":"https://dealroom.so/for-lenders/questions/what-specific-scenarios-involving-shared-directors-officers-or-key-employees-constitute-co"},{"question":"Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-a-shared-economic-interest-trigger-affiliation-for-sba-size-sta"},{"question":"How does the 'totality of the circumstances' rule apply when determining affiliation for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-totality-of-the-circumstances-rule-apply-when-determining-affiliation-for-sba"}],"related_terms":[{"term":"Limited partner","url":"https://dealroom.so/glossary/limited-partner"},{"term":"General partner","url":"https://dealroom.so/glossary/general-partner"},{"term":"Limited Personal Guaranty","url":"https://dealroom.so/glossary/limited-personal-guaranty"},{"term":"Limited Guaranty","url":"https://dealroom.so/glossary/limited-guaranty"},{"term":"Ineligible for SBA Guaranty","url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"}],"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/for-lenders/questions/how-does-the-sba-differentiate-between-a-general-partner-and-a-limited-partner-for-persona","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."]}