For SBA lenders
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.
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.
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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