Glossary · People and paperwork
In short
An owner in a partnership with full personal liability for the business's debts and obligations, and active management authority. This structure exposes personal assets to business risk.
While less common in 7(a) acquisitions than LLCs or corporations, if you're buying into a general partnership, understand the liability implications. As a general partner, you'd be personally responsible for all business debts, which is a significant risk beyond your equity injection. Most buyers prefer structures that limit personal liability.
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