Glossary · People and paperwork
In short
This means each party is individually responsible for the entire debt, and together they are also responsible. The lender can pursue any one party for the full amount.
If you and a co-applicant or guarantor are jointly and severally liable, the SBA lender can collect the full loan balance from any one of you if the business defaults. This is a critical distinction from only being liable for a portion. Understand this liability fully before signing.
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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