For SBA lenders
Short answer
Yes, generally all owners with 20% or more equity in the small business must provide an unconditional personal guaranty.
SBA policy requires that all individuals or entities owning 20% or more of the equity of the applicant business must provide an unlimited personal guaranty. This ensures that those with a significant stake in the business are personally invested in its success and repayment.
A borrower applies for a $500,000 SBA 7(a) loan. The business has four owners with 30%, 25%, 25%, and 20% equity stakes respectively. Each of these four owners must execute an unlimited personal guaranty for the loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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