Glossary · People and paperwork
In short
A co-borrower is an additional individual or entity that shares responsibility for repaying the loan. They are equally liable for the debt alongside the primary borrower.
In an SBA 7(a) loan, if you're buying a business with a partner who will also be a key principal, they'll likely be a co-borrower. This means their financial strength, credit history, and personal guarantee are also evaluated by the lender.
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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