Glossary · People and paperwork
In short
Individuals whose skills and contributions are critical to the success and operation of the business. For an SBA loan, these are typically the owner-operators and any essential employees.
The SBA requires that key personnel, including all owner-operators with 20% or more ownership, personally guarantee the loan. Lenders also assess the continuity plan for the business if a key person leaves or becomes incapacitated, often requiring "Key man insurance" to mitigate this risk.
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.
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