Glossary · People and paperwork
In short
An additional guarantor is someone who provides a personal guarantee for a loan, beyond the primary business owners. This person agrees to repay the loan if the business and primary owners default.
Lenders may require additional guarantors if the primary owners don't meet SBA's 20% equity threshold or if the business has substantial non-owner equity. Ensure any additional guarantor fully understands their obligations, as their personal assets are at risk if the business fails.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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