Glossary · People and paperwork
In short
A personal guarantee that caps the guarantor's liability at a specific amount or for specific obligations, rather than covering the entire debt. It limits personal financial exposure.
While the SBA generally requires an unlimited personal guarantee from all owners of 20% or more, a limited guaranty might be used for certain non-owner affiliates or in specific situations. However, for the primary buyer of a business, expect to sign an unlimited personal guarantee.
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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