Glossary · People and paperwork
In short
The legal right of a lender to pursue a borrower's personal assets or other collateral to satisfy a debt if the business defaults. Most SBA 7(a) loans include full recourse to the borrower.
With an SBA 7(a) loan, you, as the buyer, will almost always provide a personal guarantee, giving the lender recourse to your personal assets if the business fails to repay the loan. Understand the extent of this personal liability before closing.
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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