Glossary · People and paperwork
In short
A legal term meaning each party to an agreement is individually responsible for the entire obligation, and collectively responsible for the entire obligation. All guarantors on an SBA loan have this.
If you have multiple guarantors on an SBA 7(a) loan (e.g., you and a business partner), you will all be subject to joint and several liability. This means the lender can pursue any single guarantor for the full amount of the outstanding debt, not just their "share," if the loan defaults. Understand this commitment fully.
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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