Glossary · People and paperwork
In short
Individuals who agree to be personally responsible for the loan if the primary borrower defaults. This is common in SBA loans for all owners with 20% or more equity.
While co-borrowers are directly on the hook, co-guarantors provide a personal promise to repay the loan. For SBA loans, any owner with a 20% or greater stake must personally guarantee the loan. This is a significant commitment, so understand the "call of the guaranty" and its implications for your personal assets.
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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