Glossary · Doing the deal
In short
This is a document that legally frees a person from their personal liability on a loan. For the seller, it's crucial to get this from their old lender when you take over the business.
When acquiring a business with existing debt that you are not assuming, the seller needs to obtain a full release of their personal guarantees from their existing lenders. Your lender will require proof of this release to ensure a clean transfer of the business and its assets, avoiding lingering liabilities.
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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