Glossary · People and paperwork
In short
The individual or entity legally obligated to repay the loan. In an SBA acquisition, this is typically the acquiring business entity.
As the buyer, your new business entity will be the primary borrower on the SBA 7(a) loan. You, as the owner, will also provide a 'personal guarantee.' Understand the distinction between the business's liability as borrower and your personal liability as guarantor.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day